CREATING NOUR EL DIN SHERIF PHOTO BY: CONNECTIONS TO EMPOWER EGYPTIAN
YOUTH Sustainability Report 2019 A girl enrolled in one of the “In House Nurseries” in Edfu, providing young children with a holistic educational and social experience. As part of Tamkeen (“Empowerment”), our Integrated Village Development project covers a range of development interventions and assistance to ultra-poor families in five villages in the center of Edfu. PHOTO BY: NOUR EL DIN SHERIF PHOTO BY:
DISCLAIMER The 2019 Sustainability Report is an outline of ALEXBANK’s Laila Hosny sustainable business and operations. While ALEXBANK has made Head of CSR & Sustainable Development Office Email: [email protected] every attempt to ensure that the information contained in Address: 49 Kasr El-Nile, Downtown – Cairo. Egypt this publication is accountable and accurate, all information and performance indicated in this publication is historical; and past performance is not an assurance of future results. All Amina Khalil Intellectual Property Rights associated with this publication are Head of Social Performance & Reporting Unit proprietary. Corporate and Registered Head Office*1 Address: 49 CSR & Sustainable Development Office Email: [email protected] Kasr El-Nile, Downtown – Cairo, Egypt. View “Creating Connections Address: 49 Kasr El-Nile, Downtown – Cairo. Egypt to Empower Egyptian Youth” online. To remain true to our values as ALEXBANK, we ask you to please consider the environment before printing this report. Copyright © 2019 by ALEXBANK
2 Sustainability Report 2019 3 At one of the “In House Nurseries” in Edfu, children use play dough to both enhance their social skills and develop their creativity. Table of Contents
Letter to Stakeholders 6 6. Ensuring Sustainable Operations 110 7 6.1 Customer Protection & Satisfaction 114 1. About this Report 8 6.2 Supply Chain Management 120 1.1 Report Overview 10 1.2 Topic Materiality Boundary 12 7. Environmental Welfare 122 1.3 Stakeholder Engagement 14 7.1 Our Direct Environmental Impact 126 1.4 Celebrating Our Volunteers: The People 24 7.2 Our Indirect Environmental Impact 134 Creating Connections 7.3 Environmental Awareness 138 1.5 Behind the Lens – Our Photographers 26 8. Celebrating Diversity at ALEXBANK 140 2. About Us 28 8.1 Our Employees 142 2.1 Our Mission & Values 30 8.2 Training & Development 146 2.2 Our Strategic Goals 34 8.3 Our Internship Programs 155 2.3 Our Sustainable Development Framework 36 8.4 Our Internal Communication 155 2.4 Banking in The Age of Technology: Improving 38 the Accessibility of Our Branch Network 9. Creating Social Impact & Value 156 2.5 Going Digital & Our Cyber Security Protection 40 9.1 Our Flagship Initiative: “Ebda3 men Masr” 160 Measures 9.2 Health & Wellbeing 184 9.3 Child Development, Education & Youth Employability 188 3. Growth for Impact: Our Year in 52 9.4 Sustainable Finance 200 Review 3.1 Financial Highlights & Position 54 10. The People Shaping Our Connections 202 3.2 Our Market Share 64 3.3 Our Economic Value Distribution 66 11. Financial Inclusion & Purposeful Lending 292 3.4 Supporting SMEs: Fueling the Growth of the 68 11.1 Our Microloan Initiatives 296 Egyptian Economy 11.2 Responsible Finance: The Variable Interest Rate Program 298 3.5 Corporate & Investment Banking 80 11.3 Meeza Cards 300 11.4 Financial Awareness & Literacy 302 4. Good Governance 84 11.5 Egyptian University Students & The Banking Sector 304 4.1 Organizational Structure 88 11.6 Digital Financial Awareness 306 4.2 Our Board of Directors 90 4.2 Board Committees 94 12. Communicating Our Impact 308 4.4 Management Committees 96 13. Memberships 312 5. Risk Management for Sustainability 98 5.1 Rule-Based Automated SME Products 102 Annex 1: Audited Statement of Financial 316 5.2 Reputational Risk 104 Position 5.3 Operational Risk 106 Annex 2: GRI Content Index 320 PHOTO BY: NOUR EL DIN SHERIF PHOTO BY:
4 Sustainability Report 2019 5 Dante Campioni, Ziad Bahaa-ElDin, Managing Director & CEO Chairperson
ALEXBANK HAS BEEN WORKING TOWARDS CONTRIBUTING TO EGYPT VISION 2030’S NATIONAL DEVELOPMENTAL GOALS. Letter to Stakeholders1
This year, we have the pleasure to present you with our Egypt is a vibrant country; rich in cultural heritage that manner by aligning with strategic business and sustainability evolving to meet increasingly complex community needs, sustainability roadmap and journey for the year 2019, reflects its glorious past. More importantly, Egypt’s greatest goals. We maintain the constant growth of our Small and without compromising the environment, and while fully through our third annual Sustainability Report. This asset lies in its young population: the drivers of energy, Medium Enterprise portfolio to support Egypt’s rising youth- affirming the tenets of responsible banking. As this report year’s report is centered around the theme of Creating talent and prosperity. Everywhere around us, we are led entrepreneurial ventures, we work towards increasing demonstrates, we remain dedicated to transparently Connections to Empower Youth, as it emphasizes the heartened by the efforts of young Egyptians to develop their financial inclusion and literacy, raise environmental communicating with our stakeholders in alignment with the various initiatives we have taken as a Bank, and as an communities through technology, arts and entrepreneurial awareness to place emphasis on effective resource GRI Standards and the United Nations Global Compact (UNGC) active agent of positive change in Egypt over the past endeavors. More than ever, young Egyptians have been management, empower women, provide a platform for Egypt’s frameworks. year. Our mandate and efforts stem from a commitment to working tirelessly towards assuring prosperity for all. At artisans, and enhance our digital platforms to communicate contributing to Egypt’s Vision 2030, while simultaneously ALEXBANK, we are committed to doing the best we can as a in the language of a generation at the cusp of a revolutionary Now back to the core of this report, Egyptian youth, who growing our customer base and providing new generations business, and as a corporate citizen, to support and fulfill technological change. as employees, partners and community members are of Egyptians with the necessary tools to gain financial the needs of a youthful population demanding the best constantly working towards realizing a more vibrant and awareness and security. Our success can be credited to from its institutions. Our decision to become a member of the United Nations prosperous future. In celebration of Egyptian youth, we are the sustainability priorities and continuous support of our Environment Programme - Finance Initiative (UNEP-FI) proud to be presenting this report in a laptop sleeve made parent company, Intesa Sanpaolo Group, which remains Year after year, our ability to create shared value is alongside our Parent Intesa Sanpaolo, stems from our by “Black Duck”, the brainchild of a rising Egyptian creative engaged and active in promoting governance that pursues enriched by innovative business practices and initiatives. commitment to ensure that our products and services are entrepreneur who turns plastic into art. sustainable value creation. We commit to establishing ourselves in a sustainable
Dante Campioni, Ziad Bahaa-ElDin, Managing Director & CEO Chairperson
1 6 GRI 102-14 Sustainability Report 2019 GRI 102-14 7 1. ABOUT THIS REPORT2
The “In-House Nurseries” project provides a safe and nurturing place for the
children of Edfu. NOUR EL DIN SHERIF PHOTO BY:
2 8 GRI 102-1, GRI 102-46 Sustainability Report 2019 9 1. ABOUT THIS REPORT
1.1 Report Overview3
Bank of Alexandria (“ALEXBANK”) is an Egyptian Joint Stock This report is prepared according to the GRI Standards. The Company (S.A.E) and subsidiary of Intesa Sanpaolo S.P.A., report’s content is based on information from interviews with performing under the provisions of the Central Bank of key stakeholders, internal reports and monitoring systems Egypt (CBE) and Monetary Law No. 88/2003. ALEXBANK was and ALEXBANK’s audited financial statements. This report has established in 1957, and Intesa Sanpaolo Group became its been prepared in accordance with the GRI Standards: Core main shareholder in 2007. option.
We are proudly publishing our third annual sustainability Covering the fiscal year 2019 (from 1st of January to 31st of report to confirm and celebrate our commitment to ensuring December 2019), this report outlines ALEXBANK’s activities to the social and environmental welfare of our stakeholders, create shared value over the course of the year. Any efforts including but not limited to our employees, partners, clients described outside this period are indicated in the respective and the communities we operate in. We recognize our role sections. as a financial institution in establishing sound governance to operate transparently, sustainably and add value to Our second Sustainability Report with the title “Impact society. Aligned with Intesa Sanpaolo Group’s Business Plan Through Innovation: A New Phase of Sustainable Growth” was (2018-2021) and Egypt’s Vision 2030 developmental goals, we published on the 6th of June 2019 and covered the year 2018 have been committed to growing as a business, and serving (from 1st of January to the 31st of December 2018). It covers our community without compromising the wellbeing of the material topics we identified in 2018 as while shedding light environment. on new topics in 2019.
THROUGHOUT THE REPORT, AND IN LINE WITH OUR DEDICATION TO RESPONSIBLE BANKING VALUES, WE REFLECT ON THE GROWING CONNECTIONS BETWEEN OUR THREE CORE COMMITMENTS:
01 Establishing clear guidelines to mitigate and reduce social and environmental risks. 02 Promoting the welfare of our employees through the introduction of social programs that extend to their families. 03 Creating a framework that can be tailored to evolve with the changing demands of our growing customer base.
This year’s Sustainability Report also includes our plans our stakeholders of changes, achievements or challenges and aspirations for future developments based on the that occurred throughout 2019. In parallel, and to guarantee assumptions and forecasts of ALEXBANK and Intesa Sanpaolo transparency regarding our financial performance, we publish Group. Subject to any number of predictable or unpredictable quarterly financial statements on our website, together with risks or challenges, the current outcome, and its future a consolidated report on the Bank’s activities and financial development or performance could considerably change. statements for the year ended, as approved by our Board of As we continue to evolve, this report enables us to inform Directors. Qena-based artisan and “Ebda3 men Masr” partner Mohamed Bad- awy showcasing his decade long skill of crafting with palm wood. EL GENDY MOHAMED PHOTO BY:
3 10 GRI 102-54 Sustainability Report 2019 11 1. ABOUT THIS REPORT Boundary Indicators ‘Inside’ – indicates that the aspect has impacts that occur inside ALEXBANK 1.2 ‘Outside’ – indicates that the aspect has impacts that occur outside ALEXBANK Topic Materiality Boundary 4 2019 Material Topics Level of Priority Aspect Boundary Company Value & Solidity High / High Inside / Outside Integrity in Corporate Conduct High / High Inside / Outside Privacy & Security High / High Inside / Outside Financial Inclusion & Purposeful Lending High / High Inside / Outside Economic Performance & Market Presence High / High Inside Business Efficiency & Continuity High / High Inside / Outside Agribusiness High / High Outside Training & Development High / High Inside Digitalization & Accessibility High / High Inside / Outside Customer & Employee Health & Safety High / High Inside / Outside Workplace Diversity & Inclusion High / High Inside Sustainable Investment High / Medium Inside / Outside Community Development & Empowerment Medium / High Inside / Outside Direct Environmental Impacts Medium / High Inside / Outside Sustainable & Responsible Procurement Medium / Medium Outside
Figure 1: Materiality Gap
PHOTO BY: NOUR EL DIN SHERIF PHOTO BY: Economic Performance & Integrity in Corporate Conduct Market Presence High Company Value & Solidity Agribusiness Privacy & Security Digitalization & Accessibility Business Efficiency Financial Inclusion & & Continuity Purposeful Lending Community Training & Development Development & Empowerment Customer & Employee Direct Health & Safety Environmental Impacts Workplace Diversity Sustainable & Responsible & Inclusion Procurement
Medium Sustainable TO DETERMINE THE SCOPE OF THIS REPORT, Investment
WE CONDUCTED A MULTI-STAKEHOLDER to Stakeholders Significance SURVEY TO GATHER KEY STAKEHOLDER INSIGHTS ON MATERIAL AREAS. Low Low Medium High We also complemented the stakeholder insights with Significance to Bank reporting aspects from the GRI standards that are of high materiality to the financial services sector in Egypt, the Group’s priorities as outlined in Intesa Sanpaolo’s Business Plan (2018-2021) and ALEXBANK.
The below table details GRI topics and their materiality in relation to ALEXBANK. It complements the summary table, Laila Hosny Amina Khalil Copyright © 2019 by ALEXBANK which includes each topic’s materiality and the topic Head of CSR & Sustainable Development Office Head of Social Performance & Reporting Unit Email: [email protected] CSR & Sustainable Development Office A close up of Egypt's River Nile captured in Sohag. boundary for every material topic. Address: 49 Kasr El-Nile, Downtown – Cairo. Egypt Email: [email protected] Address: 49 Kasr El-Nile, Downtown – Cairo. Egypt
4 GRI 102-47 13 1. ABOUT THIS REPORT The smiles of two young children in class at “I The Egyptian”, our partner promoting a safe, shielded environment for children.
1.3
Stakeholder Engagement5 FARAH SHALABY PHOTO BY:
TRANSPARENTLY ENGAGING WITH OUR STAKEHOLDERS, BOTH INTERNAL AND EXTERNAL, IS CRUCIAL TO OUR SUSTAINABILITY AND GROWTH. THEREFORE, OUR COMMUNITYSHIP APPROACH IS AT THE CORE OF EVERY DECISION WE MAKE.
CommUnityShip is an integral part of our approach to doing business, as all our products, services, and initiatives are developed to cater to the needs of all our stakeholders and the community as a whole.6
In 2019, our efforts to effectively capture the needs and insights of our stakeholders included:
1. 2. 3.
To gather insights from our internal We circulated a stakeholder For the third consecutive year, and as Network Personnel Retail and Individual Customers Intesa Sanpaolo Group (ISP) stakeholders, we conducted four survey to our external part of our efforts to maintain clear Staff Personnel Microfinance Customers Egyptian Government engagement workshops around stakeholders to gather communication channels with all our the topics of: (1) Human Capital their invaluable feedback stakeholders and to advocate for All Employees and Managers SME Customers International Finance EMPLOYEES and Customer Satisfaction; (2) and insights around our sustainability in Egypt, we organized CUSTOMERS Corporation (IFC) Top Management Large Corporate Customers
Environmental Performance and Supply sustainability approach, an annual CSR conference where SHAREHOLDERS Chain Practices; (3) Creating Shared and their recommendations we engage with sustainability and Trade Unions Social Enterprises Value and Social Investments; and for enhanced practice and development practitioners and the Public Authorities (4) Overall Sustainability Approach communication. CSR community. Moreover, the CSR and Economic Performance. These & Sustainable Development Office Associations workshops allowed us to gather in- contributed to the Egyptian Network depth insights around where we are, for Integrated Development (ENID) where to head, and recommendations “Clusters and Economic Development for more effective integration of in the South” Conference to outline its sustainability principles across our developmental initiatives to partners. Large-and-Small-Scale Impact on Future Generations Communities Served and operations. Suppliers Operated In Commercial Partners NGOs and CSR Partners SUPPLIERS
Sub-Suppliers COMMUNITY Regulatory Authorities National and International THE ENVIRONMENT Public Institutions Media
6 14 5 GRI 102-21, GRI 102-37, GRI 102-40, GRI 102-42, GRI 102-43, GRI 102-44 Sustainability Report 2019 For more information on our CommUnityShip approach, please refer to ALEXBANK’s 2017 and 2018 Sustainability Report 15 1. ABOUT THIS REPORT
Our Internal Stakeholders
THE INTERNAL WORKSHOPS ENABLED US TO ENGAGE WITH OUR EMPLOYEES REGARDING OUR OPERATIONS, AND TO ELICIT THEIR INSIGHTS, PERCEPTIONS, AND RECOMMENDATIONS TO IMPROVE THE QUALITY OF INTERNAL ACTIVITIES. THE FREQUENCY OF ENGAGEMENT WITH OUR EMPLOYEES IS DAILY, WEEKLY, BI- MONTHLY, MONTHLY AND QUARTERLY.
ALEXBANK’s staff have a high level of involvement in regard to the Bank’s sustainability efforts, but they see the need to increase the level of awareness regarding ALEXBANK’s sustainability efforts through public communication. The level of importance of the Bank’s contributions to economic, social, and environmental sustainability is quite high for ALEXBANK’s personnel. A synopsis of our efforts on behalf of our employees can be found in the “Celebrating Diversity at ALEXBANK” section of this report.
Attendees of the “Environmental Performance and Supply Chain Practices” workshop were particularly generous in their suggestions to reduce the Bank’s environmental footprint and assess environmental and supplier compliance further – two of the important material topics we address as a Bank. These are listed in the “Environmental Welfare” section of this report.
During the “Overall Approach and Economic Performance” and the “Human Capital and Customer Satisfaction” workshops, the need to further address customer complaints more efficiently and improve customer satisfaction through digitalization and accessibility in our branch networks was discussed. Participants also suggested to maintain the Bank’s focus on Agribusiness and Digitalization moving forward. These recommendations are mentioned in the “About Us” and “Growth for Impact: Our Year in Review” sections. The “Social Investments and Creating Shared Value” workshop allowed us to engage and reflect on our sustainability practices and our methods to create shared value through our multiple sustainability initiatives. This is further elaborated in the “Creating Social Impact and Value” section of this report.
Overall, our internal stakeholders were pleased with the achievements that ALEXBANK has made throughout 2019. They made numerous actionable and efficient recommendations throughout the workshops that would enable each department to grow and improve its operations, in order for both stakeholders and the Bank to benefit in 2020.
A group of students enjoying and engaged by the educational activities offered at “I The Egyptian” where work is being done towards providing Egypt’s marginalized
PHOTO BY: FARAH SHALABY PHOTO BY: children with educational support.
16 Sustainability Report 2019 17 1. ABOUT THIS REPORT
Our External Stakeholders
A SURVEY WAS CONDUCTED FOR OUR EXTERNAL STAKEHOLDERS TO EXAMINE THEIR LEVEL OF AWARENESS OF ALEXBANK’S SUSTAINABILITY STRATEGIES AND GROWTH, HOW WE CAN BETTER UTILIZE OUR SCALE AND OPERATIONS TO CREATE MORE VALUE, AND TO BETTER UNDERSTAND THEIR PERCEPTIONS REGARDING THE IMPORTANCE, RELEVANCE AND PRIORITY OF CERTAIN ECONOMIC, SOCIAL, AND ENVIRONMENTAL SUSTAINABILITY INDICATORS TO THE BANK. WHILE THE SURVEY WAS ESPECIALLY CREATED FOR US TO GET AN INSIGHT ON OUR EXTERNAL STAKEHOLDERS’ OPINIONS ABOUT SPECIFIC MATTERS, THE FREQUENCY OF ENGAGEMENT WITH OUR CUSTOMERS AND BUSINESS PARTNERS IS DAILY, WEEKLY, BI-MONTHLY, MONTHLY AND QUARTERLY.
Survey respondents identified a few topics and activities that they would like ALEXBANK to take part in, to enhance communication and help us manage and adhere to their needs. According to the survey results, over 60% of respondents had never read any of ALEXBANK’s Sustainability Reports covering the years 2017 and 2018. However, when asked to rate ALEXBANK’s level of communication (low, medium, high) with stakeholders, most respondents (41.7%) selected medium. These were chiefly customers and partners. Our efforts to improve our level of communication to high can be shown in the “Ensuring Sustainable Operations” section of this report. Additionally, our response to this would also be to create a higher level of awareness through our branch networks by implementing the recommendations of the survey respondents, which are addressed in the table below to help us identify and prioritize our initiatives and community collaborations:
Our partners of success: Abeer Baddara, Ahmed Ismail, Amal Mowafey, Ramez Maher, Omar Khalifa, Azza Kamel, El Sayed Torky, Eric Oechslin, Hanna Aboulghar, Jaquelin Mourad, Kiko, Lamise Negm, Mariam El Yashaa, Amena El-Saie, Maya Morsy, Mohsen Sarhan, Reda Fadl, Mostafa Wahba, Omneya Hanna, Peri Abouzeid, Ragab Hassan Mohamed, Noura Selim, Usama El Ghazali, Najat Ali, Yasmeen El 18 Sustainability Report 2019 Khamees, Yasmine Helal, Mary Saad and Yasmina Abou Youssef. 19 1. ABOUT THIS REPORT As part of our longstanding project “Improving the Living Conditions of Children in Street Situations”, the “I The Egyptian” school students are encouraged to develop their social and educational skills to better integrate into society. Topics/Activities Recommendations/Comments
Private Suggestions included creating private exhibitions that involve initiatives and partners other Exhibitions than those of “Ebda3 men Masr”. These initiatives could offer a variety of training programs and different kinds of exhibitions, like tradeshows or virtual exhibitions.
Cooperation and External stakeholders are very keen to extend their level of communication and Communication cooperation with ALEXBANK. Recommendations included that ALEXBANK: Send monthly newsletters; Share its Strategy for CSR and sustainable development; Stage more exhibitions; Produce short videos to be shared on YouTube; Conduct introductory seminars on CSR and sustainable development; Publish news bulletins about online banking applications; Provide constant communication on and solutions to marketing problems; and Hold workshops for the Bank’s strategic partners and stakeholders to advocate about sustainability plans and efforts.
Environmental Some stakeholders felt they did not have enough information or documentation about Protection and ALEXBANK initiatives, and, therefore, could not adequately evaluate our efforts. Accordingly,
Sustainability some of their answers were based on priorities they think the Bank should address. FARAH SHALABY PHOTO BY: However, despite this limitation, they firmly believe that the Bank needs to focus on and prioritize environmental protection and sustainability in all its key aspects. Sustainability Topics Level of Awareness
Branch Networking To better utilize our branch network to create more value for the communities in which the Bank operates, responses and recommendations included: Economic Participants’ overall impression is that economic sustainability is very important to ALEXBANK. A ranking of high (5) for economic performance (46%), (3) for market presence Networking with NGOs in each region; Sustainability (27%), (4) for indirect economic impacts (36%), and (5) for procurement practices (18%). Increasing documentation about the Bank’s objectives, activities and current programs; Regularly advertising important Bank services and initiatives; Setting up booths or partitions in branches that highlight CSR and sustainable development activities in that specific branch community; Social Sustainability All sub-topics for Labor Practices and Decent Work, Human Rights and Suppliers and Adopting initiatives that would encourage the local community to have an active role; and Product Responsibility and Society were of medium to high importance to stakeholders, Providing assistance to owners of small businesses. as most ranked them at (3), (4), and (5), with approximately 45% of survey respondents choosing (5) for Labor Practices and Decent Work. Training security personnel on human rights principles, anti-corruption policies, Furthermore, because the level of awareness between the Bank and our stakeholders was mainly at “medium” level, procedures and actions, and compliance to laws and regulations were of particularly high some stakeholders would like us (1) to improve our level of communication about our sustainability efforts with the importance as most survey participants ranked the sub-categories Human Rights and public at large by sending frequent emails informing partners of ALEXBANK’s strategies − on a sectoral basis, in partic- Suppliers at (5). The findings revealed that most stakeholders selected importance levels ular – and (2) to implement inclusive development approaches and sustainability in combination with the Bank’s SMEs of (3), (4), or (5), Product Responsibility and Society evidencing their high priority. target markets development strategy.
Beyond general insights, we wanted to understand our stakeholders’ perspectives in terms of what topics they think Environmental Survey responses highlighted that all sub-topics for environmental sustainability were of are material to ALEXBANK and how we can improve our sustainability regarding those topics. According to survey Sustainability medium to high importance to stakeholders as the options for ranking of (3), (4), and (5) responses, there is a high level of involvement in regard to the Bank’s sustainability efforts. The level of importance to received the majority of votes. Biodiversity was the most common selection, followed by stakeholders for our economic, social, and environmental sustainability is quite high (5 on a scale of 1 to 5). The table energy consumption and saving, greenhouse gas emissions, and environmental impact for below summarizes stakeholder survey insights gathered for sustainability topics: products and services.
20 Sustainability Report 2019 21 1. ABOUT THIS REPORT
The General Public
5th Annual CSR Conference and 3rd Egypt Integrated Network for Development’s Matchmaking Forum- “CSR & the Rise of 6th Annual Conference Regional Partnerships in Development”15, 16 April 2019 – Federation of Egyptian Industries, For a third year, ALEXBANK collaborated with the Egypt Sawiris Foundation for Social Development, Integrated Network for Development (ENID) to host their Professional Development Foundation. sixth annual conference titled “Clusters and Economic Development in the South” in February, in Luxor. The For the third consecutive year, ALEXBANK co-organized conference aimed to bring together multiple entities in the fifth CSR Annual Conference and third Matchmaking the field of development to highlight different models that Forum “CSR & the Rise of Regional Partnerships in enable social and economic progress. More importantly, it Development” with the Federation of Egyptian Industries allowed for diversity in dialogue to thrive, ensuring that a (FEI), in collaboration with the Sawiris Foundation for Social more holistic approach is considered when implementing Development (SFSD) and the Professional Development strategies to secure Egypt’s future. The conference took Foundation (PDF), with a focus on enhancing sustainable place under the auspices of H.E. Dr. Mostafa Madbouly, and inclusive development, fostering foreign direct Egyptian Prime Minister, H.E. Dr. Sahar Nasr, then Minister investment (FDI) in Egypt and in Africa as well as ensuring of Investment & International Cooperation, and Ms. Randa women and youth economic empowerment in rural and Abou El-Hosn, UNDP Resident Representative in Egypt. The disadvantaged areas. The Bank was able to bring together conference highlighted the value of diversity in development for 2,500 attendees, 14 international speakers, and 40 local and solidified ALEXBANK’s current strategy to work towards experts, across 10 panel discussions to promote dialogue implementing a diverse range of financial inclusion programs surrounding the role of CSR in promoting a sustainable that promote economic and social welfare both in Upper developmental foundation for countries in the MENA region. Egypt and across the country.
The conference welcomed 15 diverse speakers and was Social Media inaugurated by then Minister of Social Solidarity Dr. Ghada Wali, then Minister of Trade and Industry Eng. Amr Nassar, Our Facebook page is a gateway for all members of our and Eng. Mohamed El Sewedy, Chairman of the Federation community, providing regular updates on our services, of Egyptian Industries. It began by opening the “Ebda3 men initiatives and products. Moreover, in an effort to enhance Masr” Bazaar, taking place for the second year, where 18 our communication channels with clients, this popular social exhibitors displayed their work, including refugees from media platform enables us to directly respond to inquiries Sudan and Ethiopia, introducing a multi-cultural handicraft and interact with followers. and business model for economic empowerment to individuals from all over Africa.
The “CSR Conference” is one of many dialogue platforms ALEXBANK supports in order to further dialogue and discourse on developmental frameworks in the region. 22 Sustainability Report 2019 23 1. ABOUT THIS REPORT
1.4 FARAH SHALABY PHOTO BY: Celebrating Our Volunteers
We recognize and value the individuals actively participating The People Creating Connections in the advancement of their communities, working behind the scenes to bring our projects to life and creating long- While last year’s report celebrated our Bank’s Creating term value. Our volunteers have transformed our ideas Shared Value (CSV) flagship initiative: “Ebda3 men into tangible realities that enrich Egypt’s developmental Masr” through its partners, this year we dedicate our landscape. publication to the trailblazers enacting social change in Egypt: our people…our volunteers. Members of ALEXBANK’s community spanning all ages and backgrounds contributed to the development and success of initiatives to promote hunger alleviation, child IN 1957, ALEXBANK WAS development, environmental welfare, and education in Egypt. We are proud to report that more than150 of ESTABLISHED AS A PUBLIC our employees from across all functions took part in volunteering activities in 2019, representing a communal INSTITUTION TO SERVE THE commitment to promoting development that can be NEEDS OF THE EGYPTIAN sustained. POPULATION AND PROVIDE Our volunteers gave us the privilege to witness how passion, resilience, and dedication can influence major reforms. CRUCIAL FINANCIAL SERVICES Above all, they have eloquently displayed a key message: ACROSS THE COUNTRY. OUR “creativity is crucial to creating a connection that will translate to developmental growth.” Embracing technology, GOAL IS TO PROMOTE THE utilizing artwork, and diversifying financial literacy methods are just some of the many ways an all-encompassing WELFARE OF EGYPT’S DIVERSE connection can be established. COMMUNITIES WHICH IS We shed light on the stories behind the volunteers who play PRESENT IN OUR INITIATIVES a pivotal role in advancing and empowering young Egyptians both at ALEXBANK and beyond in section 10. The People IN 2019, AS IT WAS IN THE Shaping Our Connections. PAST, AND CONTINUES TO BE TODAY. WE ARE COMMITTED TO ESTABLISHING A SECURE FOUNDATION FOR EGYPTIANS ACROSS THE COUNTRY AND EXTENDING OUR SUPPORT FOR MORE GENERATIONS TO COME. A young boy learning to weave at the "I The Egyptian" school as part of a vocational training that aims to empower children to express themselves through the creative arts
24 Sustainability Report 2019 25 1. ABOUT THIS REPORT
1.5 Behind the Lens
Our Photographers
Nour El Mohamed Farah Din Sherif El Gendy Shalaby “How do you photograph change? An after and before “As an engineering graduate turned photographer, I have “One thing I love about photography is that it is image would do it for a growing plant or a sky with been developing my skills and finding my style over the like a language. What a picture can say is worth a different kinds of weather. But to see how a child in a past few years. My content, however, never drifts far thousand words, isn’t it? It is probably what got me simple community is developing through education and from my usual pictures of travel, nature and people. This into photography in the first place. With ALEXBANK, I how teachers are attending interactive workshops to sustainability report provided me with both a challenge had the privilege to see and photograph some of the deliver a better learning experience for their students, and an opportunity to combine all three. As we traveled most inspiring projects: from projects about women’s that is a change that only could be felt through seeing along the Nile from Asyut to Qena and concluding in Siwa, empowerment to child development to preserving the passionate eyes and smiles in the process. I was I was able to photograph landscapes and the people skills and reviving fabulous arts from our heritage that lucky enough to witness and photograph some of the there working to produce products that show craftsman- are almost gone, in addition to making a living out of projects that ALEXBANK supports in Upper Egypt and be ship among young women, and environmental awareness it for many people. It is truly inspiring to get a chance able to meet ALEXBANK’s staff from Sohag to Tanta and through agriculture and recycling. I would like to thank to document these moments. It reminds me of the hear their stories of volunteerism and how they were ALEXBANK for the journey, as well as for the opportunity reason why I started practicing photography.” part of this journey of change.” to document the diverse projects they support.”
26 Sustainability Report 2019 27 The women behind the “Firka Niqada Textile” workshop, contributing to Qena’s famed historic artform.
2. ABOUT US7 PHOTO BY: MOHAMED EL GENDY MOHAMED PHOTO BY:
28 7 GRI 102-1, GRI 102-2, GRI 102-3, GRI 102-4, GRI 102-5, GRI 102-6, GRI 102-17 Sustainability Report 2019 29 2. ABOUT US
2.1 Our Mission & Values
We continuously aim to provide high quality banking and financial services to our customers to promote development in the areas in which we operate, while focusing on sustainable results and the creation of a process, based on the trust deriving from customer and shareholder satisfaction.
We recognize our role as a financial institution and the impact we have on the welfare of our stakeholders and surrounding community. We are guided by our own Code of Ethics which is drawn in light of Intesa Sanpaolo Group’s Code of Ethics as a real relations charter between the Bank and its stakeholders.
Our values embrace our key stakeholders including customers, employees, shareholders, suppliers, the environment, and the community at large. These guidelines solidify our commitment and integration of social and economic responsibility.
TO EMPHASIZE OUR EFFORTS OF CREATING A CULTURE OF TRANSPARENCY, OUR CODE OF ETHICS CAN BE FOUND ON ALEXBANK’S OFFICIAL WEBSITE AND IS PROVIDED TO ALL NEW EMPLOYEES UPON HIRING. MOREOVER, IT IS ADDRESSED IN OUR INDUCTION PROGRAM PROVIDED TO NEW HIRES.
PHOTO BY: NOUR EL DIN SHERIF PHOTO BY: Egypt’s River Nile flowing through the city of Sohag.
30 Sustainability Report 2019 31 2. ABOUT US At the “Tawazun” (“Balance”) farm in the Siwa Oasis, visitors are greeted with majestic dandelions.
Our Values8
TO ACCOMPANY THE VALUES THAT GOVERN ALEXBANK, WE HAVE A DEDICATED EMAIL [email protected] TO WHICH ANY CASES OF NON-COMPLIANCE WITH THE CODE OF ETHICS CAN BE ADDRESSED TO BE HANDLED IN THE HIGHEST POSSIBLE CONFIDENTIALITY.
Integrity Excellence Transparency ALEXBANK pursues its goals ALEXBANK sets itself the target ALEXBANK is committed to making with honesty, fairness and of continuous improvement, transparency the basis of its responsibility in the full and farsightedness, anticipating actions, advertising and contracts true respect of the rules and challenges, cultivating extensive to allow all of its stakeholders to professional ethics and in the creativity aimed at innovation; make independent and informed spirit of signed agreements. moreover, it recognizes and rewards decisions. merits.
Respect for Specific Equality Values of the Individual Qualities ALEXBANK is committed to eliminating The value of every single person It is ALEXBANK’s intention to all forms of discrimination from its is a guide for ALEXBANK’s routine, combine large-scale operations with conduct and to respect differences which adopts listening and profound local roots and to be a in sex, age, race, religion, political dialogue as tools for continuously bank with a broad vision, without and union persuasions, language or improving its relationships with all losing sight of individuals. disability. stakeholders.
Responsibility in Use of Resources ALEXBANK aims to use all its resources attentively, promote behavior based on the best use of resources and the avoidance of waste and ostentation, and gives priority to choices that take sustainability into account. PHOTO BY: MOHAMED EL GENDY MOHAMED PHOTO BY:
32 8 GRI 102-16 Sustainability Report 2019 33 2. ABOUT US Inside ALEXBANK’s Kasr El Nil branch, where hundreds of clients are supported daily. 2.2 Our Strategic Goals
WE CONTINUOUSLY REVIEW AND REFLECT ON OUR STRATEGIC GOALS AND STREAMLINE ACROSS ALL OUR OPERATIONS TO ENSURE THEIR ACHIEVEMENT TO THE BEST OF OUR ABILITY. OUR 2019 STRATEGIC GOALS ARE IN LINE WITH THE NATIONAL CONTEXT AND INTESA SANPAOLO’S BUSINESS PLAN (2018-2021):
INCREASING FORMALIZING ESTABLISH A BANKING THE ESTABLISHING MOVING AWAY CONTINUING CREATING MARKET A MORE LEADERSHIP UNBANKED, STRONG FROM CSR TO AND BUILDING ENVIRONMENTAL working towards financial PENETRATION ROBUST RISK POSITION FOR inclusion for all segments SYNERGIES CSV UPON AWARENESS by reaching out to MANAGEMENT ALEXBANK including the informal between social Moving away from ALEXBANK among our employees, clients marginalized areas and sector. responsibility and our core Corporate Social and wider community. digitizing products and in the financing of the business activities in terms Responsibility (CSR) SYSTEM agribusiness sector. EFFORTS AND services for ease of that monetizes the cost of of governance structure towards Creating Shared accessibility. infractions to the Bank to and activities. Value (CSV) by leveraging INITIATIVES avoid losses, which will give our core business to relevant to impact a more efficient and secure create sustainable impact financing for marginalized system. in alignment with Intesa groups in society. Sanpaolo Group.
34 Sustainability Report 2019 35 2. ABOUT US
Furthermore, every effort is made to ensure that governing 2.3 bodies and the Central Bank of Egypt are regularly updated with CSR & Sustainable Development Office projects and initiatives. Our Sustainable The CSR & Sustainable Development Office strategy has enabled ALEXBANK to serve Egypt’s diverse landscape more Development effectively, achieving a 200% increase in its beneficiaries by Framework the second year. The four dimensions of our strategy are:
• Economic Development, Social Innovation and Education
• Employee Engagement
• Financial Inclusion and Sustainable Finance
• Environmental Sustainability
A main component of the strategy is that the CSR & Sustainable Development Office creates synergies across all Bank functions to enable more opportunities to create shared value. This is due to wide recognition that mutual collaborations with the Bank’s diverse functions prompts both the creation and implementation of sustainable and responsible services.
IN 2019, THE CSR & SUSTAINABLE 1. CSR & Creating Shared Value Unit DEVELOPMENT OFFICE EMBARKED The CSR & Creating Shared Value Unit introduces sustainable community development programs and ON ITS SECOND YEAR OF engages employees through strategic partnerships and IMPLEMENTING ITS FOUR-YEAR regional events. STRATEGY, WHICH ENABLES 2. Sustainable Finance for Development Unit SUSTAINABLE PROGRESSION The Sustainable Finance for Development Unit works on IN ALIGNMENT WITH INTESA promoting sustainable finance through financial inclusion SANPAOLO GROUP’S FOUR-YEAR and literacy activities and products. BUSINESS PLAN, THE SUSTAINABLE DEVELOPMENT GOALS (SDG’S) AND 3. Social Performance & Reporting Unit The Social Performance & Reporting Unit establishes THE EGYPT VISION 2030 NATIONAL environmental and social governance through analyzing The students of Funtasia take a moment to pose for a photo in and integrating environmental and social impact SUSTAINABLE DEVELOPMENT PHOTO BY: FARAH SHALABY between an action packed day of fun and learning. considerations into core business operations, policy STRATEGY. implementation, and transparent reporting.
36 Sustainability Report 2019 37 2. ABOUT US
2.4 Banking in The Age of Technology
Improving the Accessibility of Our Branch Network
OUR BRANCH NETWORK WHICH CONSISTS OF 175 BRANCHES, AND OFFICES AND PROVIDES 437 AUTOMATED TELLER MACHINES (ATMS) ACROSS THE COUNTRY WITH 4,494 EMPLOYEES TO SERVE 1.573 MILLION CUSTOMERS. IN 2019, FOUR OF OUR BRANCHES WERE RENOVATED TO ENHANCE THE CUSTOMER EXPERIENCE AND MEET THE DEMANDS OF OUR GROWING CLIENT BASE.
Promoting inclusivity across our branch network is crucial At ALEXBANK, we ensure that any complaints we receive in to ensuring all members of our community can access and any of our branches are handled in the best way possible. experience the services we provide. In partnership with We manage our complaints in a decentralized manner to Helm Consultancy, we have been working towards ensuring ensure swift and adequate responses to customers. This is that our branches are accessible to people with disabilities, achieved through ongoing communication between Head which also enables us to provide new hires from our Offices and the entire branch network. A dedicated team first inclusive hiring forum “Azm” with a safe working of Head Office employees is responsible for maintaining environment. In 2019, we are proud to report that 20 of our communication across 175 branches daily. Moreover, to branches are now accessible with an additional three to promote the development and skill enhancement of branch be completed by the first quarter of 2020, and we plan to employees, the Compliance Department have outlined all expand to our wider branch network. relevant Central Bank of Egypt guidelines and regulations in a dedicated electronic library in addition to the Group To accompany the construction undertaken to create guidelines for complaints management on our intranet which accessible branches, we have scheduled two disability is accessible to all staff in both English and Arabic. Coupled equality training sessions for an average of 30 targeted with the additional resources on our intranet page, all newly employees at the renovated branches to take place in hired branch managers receive extensive information on how 2020. The training aims to promote employee awareness to access Central Bank of Egypt circulars and regulations on ethical workplace behavior to promote the successful during their orientation. integration of the differently abled.
ALEXBANK’s esteemed management in attendance of the “Seamless North Africa Conference”, strongly supporting the advancements in the Egypt’s banking industry within the Fintech space.
38 Sustainability Report 2019 39 2. ABOUT US
2.5 Going Digital & Our Cyber Security Protection Measures9
We are currently in the midst of a radical digital transformation period aimed at ALIGNED WITH THE CENTRAL providing our customers with the most BANK OF EGYPT’S NATIONAL unique banking experiences. Digitalization is a means to advance in a manner that is AGENDA, WE HAVE BEEN reflective of our time. As a subsidiary to the leading digital Bank Intesa Sanpaolo DEVELOPING DIGITAL SERVICES Group, we are equally committed to TO ENHANCE THE CUSTOMER developing the online banking platform and multichannel banking. EXPERIENCE ONLINE.
Consumer protection is not only central to Intesa Sanpaolo and ALEXBANK’s digital operations but is a core element of the Central Bank of Egypt’s regulations. To accommodate the expansion of our diverse digital banking services and increased cyber threats, ALEXBANK has been collaborating with SecureMisr to develop the Bank’s cybersecurity strategy as well as leveraging its testing and advisory services. Thus far, our partnership with SecureMisr has enabled the Bank to ensure the highest security barriers are set in place to reduce security risks and protect client information. Our cybersecurity strategy is resilient and extends to all functions, remaining one of our core business goals. The partnership extends digital mediums and places equal emphasis on providing both employees and clients with the necessary awareness and information to mitigate risks associated with cyber-technology.
In order to meet the needs of a customer base that demands only the best from the financial institutions it In November 2019, we launched “3D Secure Service,” which is a new feature for both Debit and invests in, ALEXBANK has been expanding its digitalization Credit cards to protect users making e-commerce transactions. 3D Secure Service is a security efforts continuously. protocol that is both operated by MasterCard Secure Code and Verified by VISA. The service is designed to make internet shopping more secure through sending a One Time Password to the cardholder’s registered mobile number. The additional confirmation procedure protects cardholders from suspicious or fraudulent activity by adding a third layer of security to online transactions and authenticating the cardholder before completing the transaction. This has aided us in our efforts to reduce the cost of chargeback raised from fraud transactions. All cardholders were automatically enrolled with no extra cost.
9 40 Sustainability Report 2019 GRI 416-2 GRI 102-15 41 2. ABOUT US ALEXBANK’s newly reformed public portal enables clients to conveniently gain access to all information pertaining to services and support. ALEXBANK’s Public Portal
Our website was fully revamped in September 2019 to improve the overall communication of the Bank’s value proposition. This crucial online platform has been tailored to ensure our customers a greater experience through a more streamlined design.
THE NEW WEBSITE IS TAILORED TO RESPONSIVELY SERVE ALL CUSTOMER NEEDS THROUGH A USER- FRIENDLY INTERFACE THAT FEATURES:
Internet Banking Login Call me Back Book an Appointment Customers can access all their Customers can Customers can book an Page Reach Posts Reach accounts easily and monitor their request a call back appointment in any of our branches, transactions instantly wherever for any inquiries. mentioning their inquiries. they are in both Arabic and English. 72,293,957 72,192,916 Engaged Users Video Viewers
Loan Calculator Exchange Rate Calculator Branch and ATM Locator Customers can calculate View the latest foreign exchange Locate nearest ALEXBANK branch 4,093,399 55,873,931 their required loans’ rates and execute currency or ATM across Egypt based on the installments according to conversion calculations between customer’s geographic location. their salary and repayment the top currencies for the Total Interactions (shares, likes, comments) Page Impressions duration. Egyptian Market. 1,600,000 250,294,786 Engagement Rate Color & Font Accessibility Feedback Social Media Share Supports both contrast interface Customers rate their All pages and products can be shared for color blindness users and experience on the on different social media platforms by select between three font size website with a scale of clicking on the share icon. We believe 5.86% options for a better experience. 1 to 5 and can add their this should be displayed in a visually comments. appealing way rather than listed. Figure 4: Facebook Engagement Figures for 2019 evidencing the role our Facebook page plays in the bank’s digitalization journey
42 Sustainability Report 2019 43 2. ABOUT US ALEXREWARDS is the ALEXBANK application rewarding clients for using their credit or debit cards to make purchases. ALEXREWARDs Application
WE LAUNCHED OUR UNIQUE LOYALTY PROGRAM “ALEXPOINTS” IN JULY 2019. “ALEXPOINTS” PROVIDES CUSTOMERS WITH A COMPLETELY DIGITIZED POINTS REDEMPTION EXPERIENCE THROUGH A BEST-IN-CLASS MOBILE APPLICATION. CUSTOMERS EARN POINTS ON A HOST OF BANKING PRODUCTS AND SERVICES THAT THEY CAN REDEEM INSTANTLY AT THE FINEST BRANDS. THE APPLICATION IS DESIGNED TO SERVE IOS AND ANDROID USERS IN ARABIC AND ENGLISH, ALLOWING USERS TO CONSTANTLY ACCESS THEIR ACCOUNT AND TRACK THEIR EARNINGS.
The cumulative redemption rate reached 10.7%, in only 6 1.7 transactions. The success of the application can largely months, which is more than double the market norm at this be credited to the diverse partnerships and brands that are early stage (redemption rate = total points redeemed/total made available to users. In 2019, “ALEXPOINTS” featured 40 points earned). By the end of 2019, 11,000 customers had high quality local and international brands covering a wide registered to the mobile application and 3,000 customers range of products and services, including electronics, fashion are actively redeeming their points through an average of and travel.
44 Sustainability Report 2019 45 2. ABOUT US
Mobile & Internet Banking
Our performance is steadily growing as shown in the table below: DIGITALIZATION IS CRUCIAL TO 2018 2019 Percentage Increase Internet/Mobile Banking Customers 168,376 275,788 64% DEVELOPING A SUSTAINABLE Active Users of Internet/Mobile Banking 14,123 20,823 47% RELATIONSHIP WITH OUR CUSTOMERS Internet/Mobile Banking Transfers 46,356 86,898 87%
THAT IS REFLECTIVE OF THE DEMANDS ALEXBANK was awarded by MasterCard the “Best Co-Branded Card in Egypt 2019” for its Liverpool FC cards, OF EMERGING TECHNOLOGICAL highlighting the success of the Bank’s collaboration with MasterCard and Liverpool FC, for which ALEXBANK Take ALEXBANK with you everywhere ADVANCEMENTS. IN 2019, OUR MOBILE is the official card partner in Egypt with the new mobile app. since 2017.
AND INTERNET BANKING SERVICES, In 2019, we signed an official partnership agreement with football icon Mohamed Salah, as the Bank’s HAVE CONTRIBUTED TO OUR BRANDING official ambassador. This partnership cements the successful performance of our Liverpool FC cards aiming to EFFORTS AS LEADERS IN THE FIELD connect our clients to a cultural icon combined with a unique banking OF DIGITAL BANKING IN EGYPT. experience. The card achieved unprecedented growth rates within the Bank’s card portfolio, with the OUR MOBILE & INTERNET BANKING number of cards issued virtually doubling in 2019 and the spending growth, both domestic and cross APPLICATION IS AVAILABLE IN BOTH border, more than tripling. ARABIC AND ENGLISH AND CAN BE ACCESSED 24/7. WE ARE CONSISTENTLY WORKING TO ENHANCE OUR ONLINE ALEXBANK’s mobile banking application ensures clients can inde- CHANNEL AND ENSURING CUSTOMERS pendently access and control their finances regardless of location. CAN FULFILL THEIR BANKING NEEDS BOTH SAFELY AND REMOTELY.
46 Sustainability Report 2019 47 2. ABOUT US
Ma7fazty Seamless North Africa 2019
The conference, which was hosted by Egypt for the second This tool allows customers to transfer money to any wallet consecutive year aimed to address the challenges hindering MA7FAZTY IS ONE OF OUR in Egypt, pay mobile and utility bills, and make online ALEXBANK HAS TAKEN PART the expansion of innovative financial products and services purchases. Moreover, customers can Cash In and Out MOST POPULAR DIGITAL IN THE FINTECH CONFERENCE by bringing together renowned experts and professionals money from any ATM allowing Card-less Services, ALEXBANK in the areas of e-commerce, financial technology, and branches or Fawry outlets. We received the “Highest Growth SERVICES. MA7FAZY COMBINES “SEAMLESS NORTH AFRICA 2019”, e-payments. To shed light on ALEXBANK’s comprehensive Rate” Award for Ma7fazty from MasterCard, recognizing the efforts in this regard, two presentations were delivered ALL YOUR ESSENTIAL DAILY distinguished growth reached by the application. The wallet HELD UNDER THE AUSPICES OF on “The National Digital Savings Groups” project and pride demonstrated excellence in the digital space, recording an MONEY TRANSACTIONS IN H.E DR. MOSTAFA MADBOULY, capital startup bootcamp. Moreover, Chief IT, Digital & exceptional growth of over 120% in 2019 and securing its Innovation Officer of Intesa Sanpaolo participated in a panel position as a leading growth rate in the Egyptian market ONE MOBILE APPLICATION. PRIME MINISTER OF EGYPT AND discussion about the challenges that face Egypt’s emerging during the past three years in terms of total number of FinTech eco-system. Moreover, ALEXBANK took part in the IT’S A HIGHLY EFFECTIVE financial transactions. The launch of the wallet was widely HOSTED BY THE CENTRAL BANK exhibition as a platinum sponsor with a technological booth embraced by customers in Egypt who used it as their go-to METHOD OF FACILITATING AND OF EGYPT WITH THE NOTABLE demonstrating the latest digital and electronic banking for their daily financial transactions, resulting in a triple solutions SIMPLIFYING SECURE MONEY growth of the total value of transactions in 2019 vs. 2018. PRESENCE OF INTESA SANPAOLO
TRANSACTIONS, ALL IN A FEW To learn more about Ma7fazty, please visit ALEXBANK’s official GROUP AND ALEXBANK’S SENIOR SIMPLE STEPS. website or view our 2018 Sustainability Report. MANAGEMENT.
ALEXBANK’s top management receive recognition for Ma7fazty’s 2019 achievements in the field of online banking.
48 Sustainability Report 2019 49 For many Qena-based women, the craft of “Firka” is a tool through which to achieve economic security while “The Information Security Department simultaneously preserving the governorate’s rich heritage. is continuously working to develop a robust cybersecurity strategy to preserve the interests of our customers with the guidance of Intesa Sanpaolo Group, ensuring the successful implementation of our strategy.”
Dareen Shaheen Head of Information Security Department PHOTO BY: MOHAMED EL GENDY MOHAMED PHOTO BY:
50 Sustainability Report 2019 51 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW PHOTO BY: NOUR EL DIN SHERIF PHOTO BY:
As part of the Champions Teachers Program project in partnership with “Educate Me”, teachers from Sohag explore diverse workshops to enhance their teaching skills to better serve and inspire young Egyptians.
52 Sustainability Report 2019 53 The El-Refaie Mosque in the center of historical Cairo, and 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW in direct view of the "Al-Qalam" Foundation (“The Pen”) calligraphy workshops. It is a testament to the spectacular Islamic influences evident across Egypt and the source of inspiration for the foundation’s work. 3.1 Financial Highlights & Position10
ALEXBANK IS ACTIVE IN RETAIL, CORPORATE, AND INVESTMENT BANKING SERVICES BY PROVIDING A WIDE RANGE OF SERVICES INCLUDING; CURRENT AND SAVINGS ACCOUNTS, LOANS, DEPOSITS, CREDIT CARDS, CREDIT FACILITIES, FINANCIAL DERIVATIVES, AND DIGITAL SERVICES. MOREOVER, THE BANK PROVIDES COMPANY MERGERS, INVESTMENT PURCHASES, COMPANY RESTRUCTURING FINANCING, TREASURY MANAGEMENT AND FINANCIAL INSTRUMENTS.
In support of the Central Bank of Egypt’s efforts financing. ALEXBANK has embraced these initiatives and to place financial inclusion at the forefront of the capitalized on the resulting business opportunities to national agenda, ALEXBANK has been working towards provide long term value-added services to all its SME providing Egypt’s agricultural and industrial sectors customers. Our loans to SMEs increased by around EGP with tailored products to ensure their efficient 1.4 billion (approximately 23%) as per Central Bank of and successful inclusion within the banking sector, Egypt reporting. This was made possible via flexible mirroring Intesa Sanpaolo Group’s mission to promote financing programs designed to cover all customer economic prosperity for its stakeholders. financing needs, and innovative non-financial services including advisory, financial inclusion and literacy In the fiscal year 2018/2019, Egypt’s Gross Domestic initiatives. Product (GDP) grew at a rate of 5.6% compared to 5.3% in the previous year. Furthermore, in 2019, the Our network of 175 branches nationwide remains Central Bank of Egypt increased its efforts towards an important channel linking us to our 1.573 million wider financial inclusion, strengthening the resilience customers. As a result, and for a second time, ALEXBANK of small and medium enterprises (SME) and micro- crossed the EGP 3 billion net profit mark in 2019. PHOTO BY: FARAH SHALABY PHOTO BY:
10 54 Sustainability Report 2019 GRI 102-7, GRI 201-1 55 A young boy turns to the carpet making workshop at the "I The Egyptian" school as “In 2019, and for the second year in a row, a creative outlet and empowerment tool. we achieved a net profit exceeding EGP 3 billion. This can largely be credited to our rigorous planning processes - a tool through which we achieve success and harmony between all stakeholders.”
Remon William Head of Tableau De Bord Office PHOTO BY: FARAH SHALABY PHOTO BY:
56 Sustainability Report 2019 57 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW Decorative art pieces reflecting Egyptian culture through the ancient art of calligraphy using contemporary color combinations produced by participants of the “Al-Qalam” (“The Pen”) programs. PHOTO BY: FARAH SHALABY PHOTO BY:
Financial Highlights
Net Interest Income Total Assets Net Profit Customers’ Deposits (EGP, Million) (EGP, Million) (EGP, Million) (EGP, Million)
19 6,011 19 104,178 19 3,339 19 87,452 18 5,573 18 95,133 18 3,025 18 78,782 17 4,862 17 77,679 17 2,783 17 63,537 0 2,000 4,000 6,000 8,000 0 50,000 100,000 150,000 2,500 3,000 3,500 0 50,000 100,000 150,000
Net interest income increased by EGP Total Assets increased by EGP 9.05 Net Profit for the year increased by EGP Customers’ deposits increased by EGP 438 million or 7.9% in 2019 vs. 2018. billion or 9.5% in 2019 vs. 2018. 314 million or 10.3% in 2019 vs. 2018. 8.67 billion or 11% in 2019 vs. 2018.
Net Profit before income tax Net Loans Net Fees and Commission (EGP, Million) (EGP, Million)
19 4,444 19 41,802 2016 436 18 3,981 18 38,239 2017 563 17 3,665 17 32,149 2018 680 0 2,000 4,000 6,000 0 50,000 100,000 150,000 2019 620
Net Profit before income tax increased by Total net loans increased by EGP 3.56 EGP 463 million or 11.6% in 2019 vs. 2018. billion or 9.3% in 2019 vs. 2018.
58 Sustainability Report 2019 59 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW
Financial Highlights Total Assets ALEXBANK’s total assets reached EGP 104 billion in 2019, an increase of more than 9.5% vis-à- vis EGP 95 million in 2018. Balance Sheet volumes displayed noticeable growth compared to Return on Average Equity Loans (Net) / Deposits December 2018, primarily driven by a 9.3% and 11% increase in Net Loans to Customers and (%) (%) Customer Deposits, respectively. Lending activities have been addressed to create the conditions for sustainable growth through selectively rebuilding and re-balancing the corporate portfolio. 19 47.8% 18 48.5% Net Interest Net Interest Income increased by EGP 438.5 million, a 7.9% jump vis-à-vis 2018. 17 Income 50.6% ROAE increased by 46.0% 48.0% 50.0% 52.0% +0.3% in 2019 vs 2018. Net Loans to deposits ratio decreased Net Fees and Total Net Fees and Commissions decreased by 8.8% (EGP 60 million) year-over-year by -0.74 bps in 2019 vs. 2018. Commissions to record EGP 620 million as of December 2019 versus EGP 680 million in 2018. Income
Net Profit The Bank registered an increase in Net Profit Before Return on Average Assets Earnings per Share Before Income Tax by 11.6% to reach EGP 4.4 billion. (%) (EGP) Income Tax 19 7.51
Net Profit Net profit for the year grew by 10.4% to a record EGP 3.3 billion. This performance was partially 18 6.83 attributed to the surge in Net Income by around 6.1% year-over-year to reach EGP 6.63 billion 17 in 2019. Overall, performance was sustained by an 11% growth in Operating Income which 6.26 increased to reach EGP 6.9 billion in 2019 supported by the continued growth of Net Interest Return on assets decreased by 0.00 2.00 4.00 6.00 8.00 Income versus 2018. -0.1% in 2019 vs 2018. Earnings per share increased by EGP 0.69 or 10.1% in 2019 vs. 2018. Customer The Central Bank of Egypt’s initiatives and ALEXBANK’s efforts have reflected on our customer Deposits & landscape: Net Loans Customer Deposits increased by 11% in year-over-year to reach EGP 87.5 billion. The increase in total Customer Deposits volume is attributed to the growth of retail deposits by 13.3% mainly driven by variable long-term CDs and overset by the decrease in Corporate Deposits by 3.8%. Cost / Income Capital Adequacy (Basel II) Total Net Loans and Advances (performing and non-performing) increased by 9.3% to reach a (%) % total of EGP 41.8 billion in 2019, mainly driven by an increase in the Retail segment. 19 18.92% 18 Net Income An observable increase was noted in revenues from core banking activities of EGP 0.4 billion or 6% 21.23% year-over-year, reaching EGP 6.6 billion versus EGP 6.2 billion in 2018. This increase is associated 17 with higher Net Interest Income, which stood at a level of EGP 6 billion (8% year-over-year 18.88% compared EGP 5.1 billion in 2018). Net Commission Income showed a decrease of EGP 60 million or Cost to income reached 17.00% 18.00% 19.00% 20.00% 21.00% 22.00% 9% year-over-year to reach EGP 0.62 billion in 2019 vis-à-vis EGP 0.68 billion in 2018. 37.8% in 2019. Capital Adequacy ration decreased by 2.3 bps in 2019 vs. 2018.
Net Trading ALEXBANK’s Trading Income shows a decrease of EGP 12 million or 20% year-over-year Income to reach EGP 47 million, while other trading activities showed an increase of EGP 11 million or 26% to reach EGP 53 million in 2019 versus EGP 42 million in 2018. Total Net Trading activities stood at the same level of EGP 101 million.
60 Sustainability Report 2019 61 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW The students of “Funtasia”, a component of our One Dream project in partnership with Starcare Foundation and the Association for the Protection of the Environment (A.P.E.) engaging in an interactive educational exercise to nurture their coordination skills. Cost to In 2019, ALEXBANK continued to build-up revenue Income growth over expenses with a Cost-to-Income ratio reaching 37.8% versus 36.2% in 2018. The higher ratio in 2019 is driven by the high cost impacted by higher inflation rates.
Shareholders’ Total Shareholders’ Equity increased by 10.3%, Equity equivalent to EGP 1.1 billion, due to an increase of Retained Earnings by EGP 1.1 billion reaching EGP 8.9 billion and a decrease in ALEXBANK’s Reserves by EGP 13 million. Total shareholder’s equity in 2018 was EGP 10.5 billion, where Retained Earnings stood at EGP 7.8 billion and ALEXBANK’s reserves reached EGP 1.8 billion.
Return on Return on Average Assets stood at a level of 3.4%, Average decreased by 110 bps versus 2018 where the Return Assets on Average Assets stood at a level of 3.5%. This decrease was driven by slightly lower operational indexes offset by a lower cost of risk.
Net Loans The Bank’s Loans to Deposit Ratio continued to to Deposits decrease to reach 47.8% in 2019 vis-a-vis 48.5% in 2018 due to the higher increase in Customer Deposits year-over-year.
Earnings The Bank’s Loans to Deposit Ratio continued to Per Share decrease to reach 47.8% in 2019 vis-a-vis 48.5% in 2018 due to the higher increase in Customer Deposits year-over-year.
Capital In 2019, the Capital Adequacy Ratio decreased by Adequacy 2.3% to the level of 18.9% versus 21.2% in 2018. Ratio (CAR) (Basel II)
ALEXBANK’s audited 2019 financial statements11 can be viewed via this link: https://www.alexbank.com/en/retail/about-us/ financial-statements.html PHOTO BY: FARAH SHALABY PHOTO BY:
11 62 Sustainability Report 2019 GRI 102-45 63 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW
3.2 Our Market Share
Market Share Market Share
Total Assets Total Loans Total Deposits Retail Deposits
1.83% 1.82% 1.96% 1.95% 1.83% 2.23% 2.17% 2.16% 2.24% 2.29% 2.06% 2.05% 2.08% 2.07% 2.07% 2.76% 2.80% 2.79% 2.76% 2.71%
5,433 5,669 5,517 5,823 5,856 1,815 1,856 1,854 1,823 1,891 3,803 3,915 3,993 4,141 4,222 2,519 2,604 2,715 2,836 2,930
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Total Market BCA’s Market Share Total Market BCA’s Market Share Total Market BCA’s Market Share Total Market BCA’s Market Share
Total Assets market share maintained Total Loans market share increased to reach Total Customer Deposits market shares its level in Dec-19 by 1.83% compared 2.29% in Dec-19, with corporate loans market increased to reach 2.07% in Dec-19, with to Dec-18. share reaches 1.49% and Retail loans by 5.32%. corporate deposits market share reaches 2.71% and in Retail deposits to 0.62% Total Assets Our market share of Total Assets Market maintained its level in 2019 at Share around 1.83% compared to 2018.
Total Loans Total Loans Market Share Market increased to reach 2.29% Corporate Loans Retail Loans Corporate Deposits Share in 2019, with the Corporate Loans Market Share reaching 1.47% 1.42% 1.37% 1.41% 1.49% 5.88% 5.56% 5.55% 5.47% 5.32% 0.68% 0.57% 0.59% 0.57% 0.62% 1.49% and Retail Loans Market Share 5.32% of total market.
Total Our Market share of Total Customer 1,502 1,522 1,507 1,450 1,495 312 334 347 372 396 1,284 1,311 1,278 1,305 1,292 Deposits Deposits increased to reach 2.07% in Market 2019, with Corporate Deposits reaching Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Share 2.71% market share and Retail Deposits 0.62% of the total market. Total Market BCA’s Market Share Total Market BCA’s Market Share Total Market BCA’s Market Share
64 Sustainability Report 2019 65 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW
3.3 ALIGNED WITH INTESA SANPAOLO GROUP’S VISION, WE STRIVE Our Economic Value Distribution12 AND CONTINUE TO PROVIDE SUSTAINABLE SOLUTIONS TO OUR CUSTOMERS, WHILE MAINTAINING RESPONSIBLE LENDING ACTIVITIES, THE HIGHEST LEVELS OF SOCIAL COHESION, AND CONSCIOUS ENVIRONMENTAL PRACTICES.
Employee 2019 witnessed an increase in post-retirement medical benefits by around EGP 114 million, 12.1% more Welfare than in 2018. A rise in Pension Cost of EGP 62 million or 52% year-over-year was witnessed due to the Early Retirement Scheme, resultant in a Pension Cost of EGP 182 million in 2019. Total Salaries cost increased by EGP 157 million (including social insurance), around 11.6% more than in 2018.
Customer ALEXBANK’s financing of businesses and individuals grew by 9.3% to reach EGP 41.8 billion, with Loans a loan market share of 2.29% vis-à-vis EGP 38.2 billion in 2018, when the market share was 2.23%.
Stable Partner ALEXBANK’s total tax accounted for EGP 1.42 billion with an increase of 15.6% resulting mainly to the Egyptian from the new treasuries tax law applied in February 2019. Government
Growth Supply chain14 impacts on sustainability, environmental footprint and creating shared value for the performance can be significant. ALEXBANK’s indirect impact on the stability of its operations and Economy13 jobs of its suppliers can be measured by the EGP 1.4 billion allocated for local procurement in 2019. In 2018, following the Procurement Department’s success in transforming into a strategic business partner, the Department took far-reaching steps to further raise the bar for its standards. Though ALEXBANK does not currently have a supply chain, this does not hinder us from improving the quality of our vendors’ management process by including more vendors and enhancing the relationship with new and existing suppliers through regular meetings to discuss the market, new products and services.
Today, we were able to see direct positive results of the procurement structure that was approved in late 2017, which ensures the alignment of all our procurement practices with the Code of Ethics. Moreover, we are using the database comprised of all our 230 vendors and suppliers – mostly located in Egypt – which was created within the Procurement Centralization Project back in 2017 with the purpose of allowing efficient interactions with all our suppliers.
15 Support to the Impact in Numbers 2016 2017 2018 2019 Infographic Community Number of Beneficiaries 9,500 20,000 30,000 59,864
Number of Partner 13 18 36 43
Our economic value distribution considers the role Organizations artisans play in developing Egyptian industries. Total CSR Spending (in EGP) 10,000,000 13,000,000 22,000,000 28,000,000
12 13 14 15 66 GR1 201-1 Sustainability Report 2019 GRI 204-1 GRI 102-9, GRI 102-10 GRI 102-6 67 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW
3.4 Women greatly contribute to the rising rate of SMEs in Egypt, directly contributing to the diversity ALEXBANK Supporting MSMEs: strives to achieve through its portfolio. Fueling the Growth of the Egyptian Economy
MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) ARE WIDELY CONSIDERED THE ENGINE OF ECONOMIC GROWTH. IN TANDEM WITH THE MAIN PILLARS OF THE 2030 EGYPT’S VISION, THEY CONSTITUTE MORE THAN 95% OF PRIVATE BUSINESSES IN EGYPT AND ARE RESPONSIBLE FOR OVER 80% OF EMPLOYMENT IN THE COUNTRY.
To enable these businesses to realize their full potential and overcome the challenge of adequate access to finance, in 2016 the Central Bank of Egypt announced an initiative to encourage the banking sector to increase its lending to MSMEs. By 2019, banks were expected to have directed at least 20% of their total credit portfolios towards financing SMEs.
In the last four years since the introduction of the initiative, we have been deploying our resources to provide our support to MSMEs under the umbrella of a wider, more comprehensive MSMEs lending strategy. By the end of 2019, this strategy culminated in total loans allocated to MSMEs making up 20.49% of ALEXBANK’s total loans portfolio, up from 16.42% in 2018. Indeed, the Bank’s loans to MSMEs increased by around EGP 1.4 billion (approximately 23%), resulting in total lending to MSMEs amounting to EGP 7,657 million vis-à-vis EGP 6,221 million in 2018 as per the Central Bank of Egypt’s reporting.
Today, 74,000 MSME clients have benefited from our full- fledged lending strategy conceived to meet their needs. Most of our MSME lending portfolio are active in the Manufacturing sector (38.1%), closely followed by the Construction (20%),
Fast-Moving Consumer Goods (13%), and Agriculture sectors HAYMAN AHMED PHOTO BY: (11%).
68 Sustainability Report 2019 69 “Tawazun’s” (“Balance”) sustainable agriculture system yields high quality “Diversifying our Small Business portfolio organic produce. and investments in agribusiness activities has enabled us to commit to lending our support to SMEs, which we believe are the cornerstone of Egypt’s growing economic development.”
Magdy Al-Sharaawy Head of Small Business Office PHOTO BY: MOHAMED EL GENDY MOHAMED PHOTO BY:
70 Sustainability Report 2019 71 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW
Diversifying ALEXBANK’s Small Business Portfolio
IN 2019, THE TOTAL LOAN VOLUME ALLOCATED FOR THE SMALL BUSINESS SEGMENT ACHIEVED HIGH YEAR- ON-YEAR GROWTH WHICH CAN BE ATTRIBUTED TO ALEXBANK’S HAYMAN AHMED PHOTO BY: PORTFOLIO DIVERSIFICATION EFFORTS THAT BEGAN IN 2017, WHEN MORE EMPHASIS WAS PLACED ON THE INDUSTRIAL AND AGRICULTURAL
Amal Mahfouz is an empowered Egyptian SECTORS AS OPPOSED TO THE woman utilizing ALEXBANK’s Tamkeen (“Empowerment”) Microloan to expand her family’s agriculture and farming COMMERCIAL SECTOR. business.
72 Sustainability Report 2019 73 "Tawazun" (“Balance”) founder Abdalla 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW Eid presents his organic, locally grown red potatoes to highlight the benefits of embracing sustainable agricultural methods. Expanding Agribusiness Financing
FOR YEARS NOW, GOING BACK TO 2005 AND BEFORE, WE HAVE BEEN AN ACTIVE PARTICIPANT IN THE AGRICULTURE DEVELOPMENT PROGRAM (ADP), A PROGRAM USED TO FINANCE PROJECTS INCLUDING BUT NOT LIMITED TO: LIVESTOCK AND DAIRY PRODUCTS, POULTRY, CULTIVATION OF FISH, NEW LAND RECLAMATION AND CULTIVATION, HORTICULTURAL CROPS, MEDICINAL AND AROMATIC PLANTS, POST-HARVEST OPERATIONS, AGRICULTURAL MARKETING, AND PROJECTS BY YOUNG GRADUATES AND RURAL WOMEN. INCREMENTALLY, WE HAVE ALSO BEEN INCREASING OUR OWN FUNDING OF AGRIBUSINESSES, PROVIDING COMPETITIVE SOLUTIONS TO PAVE THE WAY FOR THEIR SMOOTH INTEGRATION INTO THE FORMAL ECONOMY.
The table below illustrates the progressive increase of our own funding of agribusiness under the Central Bank of Egypt initiative.
2017 2018 2019 Outstanding No. of Outstanding No. of Outstanding No. of Volume Accounts Volume accounts Volume accounts
ADP 91,222,358 314 73,893,152 250 35,155,278 129
CBE initiative 5% 128,831,412 241 437,057,75 816
Total 91,222,358 314 202,724,56 241 472,213,034 314
With our central focus being on the agricultural sector, which further facilitated, trainings have been provided to relevant accounts for 28% of all jobs, contributes 14.5% of Egypt’s employees, and new partnerships with multiple stakeholders Gross Domestic Product (GDP), and constitutes 55% of have been established. As a result, we increased our market employment in Upper Egypt, the proportion of agribusinesses share in the field of agribusiness financing, becoming a in our Small Business portfolio doubled within one year, leading institution in Egypt. increasing to 18% from 9% in 2018. Over the coming years, we will be working to lend greater This significant growth was achieved due to a set of care to the agricultural sector by supporting more activities improvement actions topped by the establishment of our contributing to the growth of the Egyptian Sustainable “Agri-desk” to ensure the implementation of the Bank’s vision Agriculture Development Strategy 2030. In alignment with with regards to agribusiness by providing the necessary the protocol signed with the Ministry of Agriculture and Land support to all Bank’s functions involved in the process. Reclamation to promote livestock development in Egypt
PHOTO BY: MOHAMED EL GENDY MOHAMED PHOTO BY: Further to that, the approval cycle workflow has been (2018), we are planning to introduce agribusiness financing to the Microfinance segment.
74 Sustainability Report 2019 75 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW
Supporting Egyptian Industries EGYPT IS CURRENTLY ONE OF THE WORLD’S LARGEST GROWING STARTUP MARKETS, WITH ENTREPRENEURIAL ENDEAVORS DOMINATING NEW EMPLOYMENT OPPORTUNITIES AMONG EGYPTIAN YOUTH. WHILE THE COUNTRY HAS SEEN A DRAMATIC RISE IN NEWLY FORMED AND FLOURISHING BUSINESSES, ACCESS TO FINANCING REMAINS A CHALLENGE FOR MANY STARTUPS.
ALEXBANK’s Managing Director and CEO Dante Campioni receives ‘Best Bank Role For Supporting SMEs’ in 2019.
Since 2018, we have launched numerous products to meet ALEXBANK’s FinTech Accelerator Program with FinTech hub across the region. The program has sustained In 2019, ALEXBANK signed a cooperation agreement with the demands of entrepreneurs, seeking to establish a Startupbootcamp (SBC) and Pride Capital fosters the first graduating cohort of eleven Egyptian startups the European Investment Bank (EIB) that builds upon the platform in Egypt’s industrial landscape. Therefore, we opportunities and a stronger ecosystem for entrepreneurs where it was awarded the ‘FinTech Accelerator of the 2018 EUR 20 million financing loan agreement to support launched the Industrial Development Authority (IDA) to thrive in the FinTech space. The accelerator, which Year’ for the MENA region at the 2019 FinTech Abu Dhabi SMEs and midcaps in Egypt. This cooperation agreement lending product which allows entrepreneurs (startups initiated an innovative early-stage FinTech startups festival. revolves around the associated technical assistance grant or operating entities) to profit from the industrial units program with a targeted focus on financial inclusion, was package with an amount up to EUR 500,000 directed to available through IDA. By the end of 2019, this portfolio brought to Egypt and the MENA region by Startupbootcamp ALEXBANK signed a memorandum of understanding with eligible companies interested in joining NILEX, a specific reached EGP 21 million. Moreover, our product Industrial and Pride Capital, supported by the serious commitment the Federation of Egyptian Chambers of Commerce to stock exchange for SMEs within the Egyptian Exchange Startup Finance offers customized financing solutions to of ALEXBANK. We played an active role in the growth of the enable the implementation of the TAWTEEN project, a (EGX). The assistance package covers all aspects linked support Small Businesses, such as fixed assets or working accelerator, providing mentorship and banking services digital financial inclusion initiative. The cooperation to the financial advice for pre-IPO activities ranging from capital facilities, prompting our portfolio to reach EGP 3 to all SBC companies, in addition to piloting four proof aims to support the business development of small and management consultancy, financial literacy, corporate million in 2019. of concepts (POCs) with various startups in the last six micro retailers. This is achieved through their integration governance, and business development. Furthermore, the months. This active participation was chiefly driven by the into the digital economy in line with national efforts to technical assistance provided includes internal capacity aim to contribute to Egypt’s growing recognition in the promote automation as a tool for financial transparency. building trainings for ALEXBANK employees. We will provide financial solutions to beneficiaries to enable them to adopt digital technology in managing their own operations.
76 Sustainability Report 2019 77 In 2020, ALEXBANK will begin the implementation of the agreement in cooperation with a hired consultant who will be responsible for setting a tailored plan for each client. Moreover, we plan to capitalize on this pilot phase to ensure the sustainability of the program of listing SMEs in Nilex.
Based on the strong relationship with multilaterals, ALEXBANK succeeded in securing a technical assistance package from the European Bank for Reconstruction and Development (EBRD). The total technical assistance package of EUR 550,000 is divided into EUR 400,000 for capacity building where a collaboration framework was established with the Frankfurt School of Finance and Business with a focus on improving existing processes, products, customer experience, and technical expertise of ALEXBANK employees. Under this program, workshops during which participants received specialized certified training focused on the fields of Risk Management, Agricultural Finance, Digital Finance, and Microfinance. The second tranche of EUR 150,000 is dedicated to SMEs-focused workshops as part of the cooperation agreement with the EBRD and in collaboration with the Egyptian Banking Institute (EBI), the training arm of the Central Bank of Egypt. These SMEs-focused workshops will be launched in 2020 under the name of “Business Club Academy”, aiming to provide dedicated training targeting SME owners and entrepreneurs. Modules of the “Business Club Academy” include financial management and organizational and marketing skills. The Academy’s goal is to support SME owners and entrepreneurs in taking sound business decisions and contributing to the enhancement of their competitiveness and productivity.
ALEXBANK received the “Best Bank’s Role for Supporting SMEs in 2019” award from Business Today, an independent business magazine in Egypt. The “BT 100” awards ceremony honors influential figures and companies for their effective role in enhancing the Egyptian economy.
ALEXBANK’s FinTech accelerator program with “Startupbootcamp” was a natural progression from its accelerated efforts to both promote digitalization in Egypt and support entrepreneurial growth.
78 Sustainability Report 2019 79 3. GROWTH FOR IMPACT: OUR YEAR IN REVIEW
3.5 Corporate & Investment Banking
ALEXBANK’s Corporate and Investment Banking Division is adopting a growth strategy targeting the increases of the Bank’s market share while respecting the Bank’s risk parameters and adhering to the parent company’s policies. This growth strategy is built over four pillars:
1.GROWTH 2.GROWTH OF 3.GROWTH OF 4.GROWTH OF ASSETS LIABILITIES ANCILLARY OF CROSS- BUSINESS SELLING across the Banks’ different
business At the GEFF awards ceremony where ALEXBANK was rec- functions ognized for its efforts in promoting a greener economy.
The Division’s mandate is to effectively support Egypt’s • The first issue for EUR 2 billion dual tranche Eurobond • The second issue for the EUR 2 billion dual tranche It is worth highlighting that ALEXBANK aims to continue max- economic goals in every conceivable way through being an was concluded in April 2018. It was the inaugural EUR- Eurobond was concluded in April 2019. The Joint Lead imizing the ancillary business in general and trade business active contributor to the sectors that maintain a strong denominated offering for the Arab Republic of Egypt Managers consortium comprised four of the world’s in specific, which includes structured trade finance transac- growth potential, fueling economic development and stability where Banca IMI/ALEXBANK acted as Joint Lead Manager most prominent financial institutions namely: BNP tions. This year, these endeavors culminated in ALEXBANK in Egypt. As such, ALEXBANK’s keenness to be an active con- and Active Bookrunner along with BNP Paribas, Deutsche Paribas, Standard Chartered, Natixis along with ALEXBANK/ receiving the award for “Best Trade Finance Deal” amongst tributor of growth is evidenced by its involvement in multiple Bank, and Standard Chartered Bank. ALEXBANK’s played a Banca IMI. The transaction was successfully priced with all banks within the Intesa Sanpaolo Subsidiary Banks mega transactions that aim at maximizing investments in the pivotal role in originating this high-profile bond mandate dual-tranche including EUR 750 million 6-year and EUR Division (ISBD) – namely, for the trade finance deal involving Egyptian economy. In that vein, ALEXBANK has been man- and was instrumental in all execution stages of trade. The 1.25 billion 12-year notes, priced at 4.75% and 6.375%, ALEXBANK and the Intesa Sanpaolo Paris Branch concluded dated by “El Wady for Phosphate Industries and Fertilizers” transaction’s combined orderbook amounted to over EUR respectively. The combined orderbook comprised over in 2018. (WAPHCO) to act as the financial advisor for the company 6.6 billion, resulting in the issue being oversubscribed 450 high quality accounts and amounted to approximately in regard to its global scale and export-oriented Phosphoric by more than 3.3 times, with major orders coming from EUR 8.6 billion, resulting in the issue being 4.3 times acid project. The Bank is undertaking its role on advising the top European buy and hold investors. The issue was oversubscribed with major orders coming from top US and company on the optimum capital structure, as well as the successfully priced at 4.75% and 5.625% for the eight- and European buy and hold investors, including strong interest ultimate financing alternatives for the project. twelve-year tranches respectively. While this was the first from Italian investors. sovereign transaction executed by Banca IMI EM DCM Moreover, in 2018 and 2019, ALEXBANK and Intesa Sanpaolo’s outside of Europe and essential for the Intesa Sanpaolo investment bank arm “Banca IMI” were jointly appointed by Group’s broader emerging markets franchise, it was a the Egyptian Ministry of Finance as Joint Lead Manager and landmark transaction for Egypt, establishing its presence Active Bookrunner for the two-consecutive euro-denominat- in the EUR debt capital markets. ed Eurobond issuances that are detailed hereunder:
80 Sustainability Report 2019 81 With a view on the famous ElRefaie Mosque in Islamic Cairo, students at “Al-Qalam” (“The Pen”) safeguard a traditional art that has survived hundreds of years. Today, calligraphy is seen as a means to bring the past into the present, maintaining a strongly rooted identity
that remains in touch with the modern world. FARAH SHALABY PHOTO BY:
“Considering the importance of the Corporate and Investment Banking Division as one of the Bank’s main lines of business, a strategy has been adopted for enhancing our overall performance and simultaneously boosting our Tamer SeifElDin Head of Corporate & Investment Banking Division contribution to Egypt’s economic growth and welfare. Our strategy is coinciding with Intesa Sanpaolo Group’s approach of being contributor to the markets where its subsidiaries operate.”
82 Sustainability Report 2019 83 A close-up of threads in the traditional loom, used by many weavers in Egypt to produce unique textiles.
4. GOOD GOVERNANCE PHOTO BY: MOHAMED EL GENDY MOHAMED PHOTO BY:
84 Sustainability Report 2019 85 4. GOOD GOVERNANCE
At ALEXBANK, we are committed to continuously promoting Bank has aligned with global frameworks including the United sound governance and sustainable practice. With 4,494 em- Nations Global Compact (UNGC), the Equator Principles, the ployees working towards the expansion of our 175 branches United Nations Environment Programme – Finance Initiative and Head Offices, we are consistently working towards (UNEP-FI), the Sustainable Development Goals (SDGs), and strengthening our developmental framework. As such, the Egypt Vision 2030 in order to:
Focus on strengthening our governance Ensure all stakeholders are aware of our structure. sustainable development commitments and receive their feedback through stakeholder Abide by internationally proclaimed engagement. human rights. Promote gender equality, diversity and Promote financial inclusion and wellbeing of all employees. sustainable finance. Enhance our environmental responsibility. Build inclusive, healthy and sustainable communities.
In 2019, in line with Intesa Sanpaolo Group’s governance own guidelines, which align with international best practices structure, we significantly developed our corporate and the United Nations guiding values. In July 2019, our Board governance framework to meet the highest standards by of Directors approved a localized version of the Principles, leading professional bodies and regulatory authorities. The aligning with Egypt’s national regulations and context. Standards of Corporate Governance, in particular those Coupled with the Bank’s Code of Ethics, the policy aims to defined by the Central Bank of Egypt and other regulatory reaffirm our commitment to protecting the communities bodies, are fundamental in supporting ALEXBANK’s effective we operate in and promoting ethical practice across all implementation of activities and creating sustainable business operations. We realize the significance of good shareholder value without overlooking the interests of other governance in accelerating access to information, effective stakeholders and the Bank’s business community. communication among stakeholders, sound decision-making and prioritization processes, enabling the organization to Also, during 2019, due diligence was performed on our weather challenging economic storms, and achieving better Corporate Governance framework in terms of introducing results sustainably. necessary amendments to our Articles of Association, Corporate Governance Code, and the process map for Board ALEXBANK’s whistleblowing policy enables employees to raise of Directors meetings, Committees, and assessments in serious concerns, suspected fraud cases or corruption in response to new instructions issued by the Central Bank line with Intesa Sanpaolo Group’s guidelines. The guidelines of Egypt on September 2018 and January 2019. The new guarantee the protection of individuals from any form of amendments have introduced new requirements governing retaliation, discrimination or penalization, while ensuring the frequency of Board of Directors meetings and related maximum confidentiality except in cases otherwise indicated rules aiming to efficiently reflect any regulatory changes and by the law. A dedicated email is set in place to direct any limit future modifications to the Articles of Association. communications to the Head of Compliance & AML, as well as the CEO directly, who are the only designated persons To mitigate and prevent potential violations of human to receive whistleblowing cases of non-compliance. In rights indirectly or directly associated with our activities, 2020, ALEXBANK will be working to further enhance and we introduced the Principles on Human Rights Policy.16 The adjust its existing guidelines to better align with the Group’s Principles mirror parent company Intesa Sanpaolo Group’s guidelines.17
A writer preserving and re- viving the art of calligraphy in Arabic at the “Al-Qalam” Foundation (“The Pen”) by penning a letter to a friend PHOTO BY: FARAH SHALABY PHOTO BY:
16 17 86 Sustainability Report 2019 GRI 412-1, GRI 412-2, GRI 412-3 GRI 102-17 87 4. GOOD GOVERNANCE
The stationary section of the “Al-Qalam” Foundation (“The Pen”) has every locally sourced tool an 4.1 aspiring calligrapher could need. Organizational Structure
Figure 5: ALEXBANK’s Updated Governance Structure for 201919
ALEXBANK’S ORGANIZATIONAL STRUCTURE GENERATES A TOP- DOWN IMPLEMENTATION OF STRATEGIES WHILE MAINTAINING Board of THE BOTTOM-UP FEEDBACK LOOP REQUIRED FOR SOUND Directors DECISION-MAKING AND EMPLOYEE ENGAGEMENT.18
Governance Remuneration Chairman Executive Audit Risk & Nomination Committee Ziad A. Bahaa Committee Committee Committee Committee Eldin
CEO Dante Campioni
Customer Satisfaction Ashraf Hamed Internal Audit General A.I (Amr Bahgat) Secretariat A.I (Osama Moussa) Compliance & CSR & Sustainable AML Development Mohamed Laila Hosni AbdelKader HR & Organization Legal Mohamed Sherif Ahmed El Fallal
Treasury & Retail & SME Corporate Digital COO CFO CRO ALM Sherif Investment Banking Banking Joman Salama Mohamed Eduardo Amr Gamali Lokman Tamer Seif Ramy Taha Raef Bombieri
Chief / Division Department Office Unit PHOTO BY: FARAH SHALABY PHOTO BY:
18 19 88 Sustainability Report 2019 GRI 102-25 GRI 102-18, GRI 102-19, GRI 102-20, GRI 102-22 89 4. GOOD GOVERNANCE
4.2 Our Board of Directors20
“Having Dr. Bahaa El-Din on board will further strengthen the efforts done under the current management and ALEXBANK strong team.”
ALEXBANK’s iconic heritage headquarter in the Dante Campioni, CEO and Managing Director historic banking district of Downtown Cairo.
Our Board of Directors, comprised of two executive members Dr. Ziad Bahaa El-Din has occupied several high-level political Sherine El Sharkawy holds a BA degree in Economics from WE REALIZE THE SIGNIFICANCE and six non-executive members, is the highest authority at and economic appointments, most notably as Egypt’s Deputy the American University in Cairo (AUC) in Egypt and a MSc in OF GOOD GOVERNANCE IN ALEXBANK. To carry out banking operations soundly, and Prime Minister and Minister of International Cooperation, Finance and Investment from the University of Exeter in the because it is our interest to incorporate the most critical Executive Chairman of the Financial Regulatory Authority United Kingdom. ACCELERATING ACCESS TO advice and robust actions into our undertakings, the (FRA), Executive Chairman of the Egyptian General Authority Board of Directors utilizes the capabilities and knowledge for Investment and Free Zones (GAFI), the Legal Advisor to She is a member of the Association of Graduates from British INFORMATION, EFFECTIVE of expert industry professionals in all pertinent technical Egypt’s former Minister of Economy and board member in the Universities in Egypt, a member of the German Arab Chamber COMMUNICATION AMONG fields. In 2019, ALEXBANK welcomed two new members to its Central Bank of Egypt. He is currently the Managing Partner of of Industry and Commerce in Egypt, and a member of the Board of Directors while it witnessed the end of Mr. Atter Bahaa-Eldin Law Office (in Cooperation with BonelliErede) and Egyptian Junior Businessmen Association in Egypt. STAKEHOLDERS, SOUND Ezzat Hannoura’s term, who had been part of our Board the Managing Partner of Thebes Consultancy. Dr. Ziad Bahaa Mrs. Sherine El Sharkawy was a Manager in the Credit of Directors since May 2012. Mr. Hannoura now holds the El-Din and has more than 30 years of experience in the fields Department before she became a Director and then Head DECISION-MAKING AND position of Director of the Public-Private Partnership (PPP) of legal consultancy, compliance and governance of financial of Direct Investment at the Commercial International Bank PRIORITIZATION PROCESSES, Central Unit at the Ministry of Finance. Our new members institutions. (CIB) in Cairo. Her career evolved to occupying the position are Dr. Ziad Ahmed Bahaa Eldin, who was appointed the of Senior General Manager of Corporate Finance at the Ahli ENABLING THE ORGANIZATION non-executive Chairman of the Board in February and Mrs. Dr. Ziad Bahaa El-Din is a member of the Board of Trustees United Bank in Egypt until 2009, before becoming the Deputy Sherine El Sharkawy, who represents the public domain and of the Cairo Regional Centre for International Commercial Minister of Finance for Economic Affairs. TO WEATHER CHALLENGING was appointed as a non-executive member of the Board in Arbitration, a Member of the Board of Trustees of the ECONOMIC STORMS, AND August. Today, our Board of Directors includes two women, American University in Cairo, and Chairman of the Ahmed evidencing the Bank’s efforts to promote diversity and Bahaa El-Din Cultural Foundation in Assiut. He earned his PhD ACHIEVE BETTER RESULTS increase the number of women in leadership positions. 22 in Financial Law from the London School of Economics in 1997, 21 and his graduate degree in International Business Law from SUSTAINABLY. the University of London in 1989. He earned his undergraduate degrees in law from Cairo University in 1986 and in economics from the American University in Cairo in 1987.
20 21 22 90 GRI 102-23, GRI 102-24, GRI 102-26, GRI 405-1 GRI 102-29 GRI 102-27 Sustainability Report 2019 91 4. GOOD GOVERNANCE
Board Members
Dr. Ziad Ahmed Mrs. Elena Mr. Dante Mr. Eduardo Mr. Giovanni Mr. Andrea Mrs. Sherine Dr. Ehab Mohammed Bahaa Eldin Breno Campioni Bombieri Bergamini Bressani* El Sharkawy Hassan Abou-aish
Non-Executive Chief Executive Chief Executive Executive Member Non-Executive Non-Executive Non-Executive Non-Executive Chairman of Officer (CEO) and Officer (CEO) and of the Board - Member of the Board, Member of the Board Member of the Board- Member of the Board, Managing Director- Managing Director- Representative of Representative of - Representative of Representative of the the Board - Representative of Representative of Representative of Intesa Sanpaolo Intesa Sanpaolo Intesa Sanpaolo Public Domain Representative of Intesa Sanpaolo Intesa Sanpaolo Intesa Sanpaolo the Public Domain
ALEXBANK’s Board of Directors, with the support of a swift access to information and effective communication MEMBERS ARE NOMINATED TO SERVE ON THE BOARD OF solid compliance culture, continues to play a vital role with management, the directors of the board are able DIRECTORS BASED ON CONSULTATIONS BETWEEN THE in encouraging positive behavior. Significant focus has to formulate more successful strategies. This includes been placed on the role that culture plays in the success more efficient allocation of resources and capital. The GOVERNING BODY AND MAJOR STAKEHOLDERS. FOLLOWING of an organization. Having clearly delineated policies strong governance framework further assists the Board and processes and a Board of Directors and executive of Directors in understanding the regulatory environment INTERNAL APPROVAL, THE CANDIDATES ARE SUBMITTED TO THE managers who take an active interest and responsibility governing the business; leveraging technology from a CENTRAL BANK OF EGYPT FOR FINAL APPROVAL.23 in the activities of the company helps prevent failures production, distribution and communications point of whilst setting the organization’s cultural expectations. With view; and identifying and managing the interests of all stakeholders. 24
23 24 92 GRI 102-28 Sustainability Report 2019 *Term to end in 2019 GRI 102-21 93 4. GOOD GOVERNANCE
4.3 Board Committees25 THE BOARD OF DIRECTORS DELEGATES IMPLEMENTATION AND CAPACITIES TO THE FOLLOWING FIVE CORE COMMITTEES:
1. The Executive Committee deliberates on all strategic matters affecting ALEXBANK. It decides on the overall credit risk exposure, proposes acquisitions, divestments, and new equity issuance, and suggests modifications to the organizational structure and governance system of the Bank.26
2. The Risk Committee supports the Board of Directors in the exercise of its strategic supervisory duties in relation to the risk management framework. Moreover, the committee oversees the implementation of the strategies for capital and liquidity management as well as for all other relevant risks of an institution, such as market, credit, operational (including legal and IT risks) and reputational risks, in order to assess their adequacy against the approved risk appetite and strategy.
3. The Remuneration Committee recommends and approves remuneration rules, policies, and incentive schemes throughout ALEXBANK. Also, it verifies alignment with Intesa Sanpaolo’s remuneration policy and expenses of annual personnel remuneration.27
4. The Governance and Nominations Committee evaluates ALEXBANK’s governing system and supports the Board of Directors in the selection of proposed tasks regarding the members of the board and its committees.
PHOTO BY: FARAH SHALABY PHOTO BY: 5. The Audit Committee regularly assesses the adequacy, efficiency and functionality of the An example of framed traditional calligraphy Bank’s internal control system and accounting system. The Committee displayed on the wall of a classroom at the also represents a reference point for all local control functions (Risk “Al-Qalam” (“The Pen”) Foundation. Management, Internal Audit, Compliance and Anti-Money Laundering) as well as the local Administrative Financial Governance and verifies their effectiveness and the adequacy of their coordination.
25 26 27 94 GRI 102-22 Sustainability Report 2019 GRI 102-32 GRI 102-35, GRI 102-36 95 4. GOOD GOVERNANCE
4.4 Management Committees FARAH SHALABY PHOTO BY: THE MANAGEMENT COMMITTEES ARE, WITHIN THE COMPETENCIES ASSIGNED TO THEM BY THE BOARD OF DIRECTORS, INDEPENDENT BODIES AND, ON THE BASIS OF THE RELEVANT RESOLUTION/
REQUESTS OF THE BOARD OF DIRECTORS, ARE DELEGATED TO An example of framed traditional calligraphy displayed on the wall of a classroom at the INITIATE, ADVISE, COMMENT, OR DECIDE ON PARTICULAR MATTERS. “Al-Qalam” (“The Pen”) Foundation.
1. Credit Risk 2. Credit 3. Problem Assets 4. Assets & Liabilities 5. Operational Risk 6. Change 7. National Controls 8. Tender Committee Governance Committee Committee Management Committee Management Coordination The Tender Committee Committee Committee Committee Committee The Credit Committee of The Problem Assets The Operational Risk The Credit Risk Governance ALEXBANK was established Committee is the highest The Assets & Liabilities Committee is a permanent The Change Management The Internal Controls is ALEXBANK’s topmost Committee is a permanent by the Board of Directors in permanent decision-making Management Committee is a decision-making and Committee is responsible for Coordination Committee procurement decision- decision-making and compliance with the Articles Committee of the Bank permanent decision-making advisory committee whose the strategic management is a permanent advisory making body established advisory committee whose of Association of the Bank. regarding risky and non- and consultative committee, mission is to ensure a of changes within the committee, acting within with the aim to ensure that mission is to ensure a The Credit Committee is the performing counterparties focused on financial risk qualified and competent Bank’s overall operations the limits of the delegations the Bank makes effective qualified and coordinated highest permanent decision- whose main responsibility governance, on active management of operational through the definition and and competences decisions when selecting management of credit making committee of the consists in taking necessary value management issues, risk issues (ICT/cyber risk monitoring of the Bank’s established by the Board of suppliers and contractors risk within the exercise of Bank regarding performing measures in order to on strategic and operative inclusive), in compliance project portfolio, prioritizing Directors, with the aim of for goods and services credit prerogatives of the counterparties, whose main prevent and mitigate credit management of assets and with the applicable laws, the respective projects and strengthening coordination on a tender basis. The Bank and in compliance responsibility consists in losses connected with risky liabilities, and on financial Group regulations and investments in line with the and cooperation among committee functions on a with the applicable laws, adopting credit decisions in and deteriorated assets, product governance in internal procedures. Bank’s strategy, monitoring the Bank’s various control permanent basis to approve Group regulations and line with the issued strategic while acting within the credit compliance with Parent of related activities and functions, and facilitating the awarding of contracts Parent Company strategic guidelines and credit prerogatives of the Bank Company guidelines, Bank’s spending, as well as solving the integration of risk and select tender winners decisions. The Committee’s policies, while acting within and in compliance with the internal regulations, laws, any escalated issues. management processes. for procurement of goods, main responsibility is to the credit prerogatives of applicable laws and Group rules and regulations set by services or assets in full define, and update credit the Bank and in compliance regulations. the competent Authorities. compliance and respect of risk strategic guidelines and with the applicable laws and The Committee, acting within ALEXBANK’s “Procurement credit management policies Group regulations. the limits of the delegations rules” issued by the Bank’s based on constant credit and competences ISGS Procurement Service. portfolio monitoring. established by the Board of Directors, is dedicated to the following areas:
• Financial Risk Governance and Assessment
• Operative Management
96 Sustainability Report 2019 97 5. RISK MANAGEMENT FOR SUSTAINABILITY28
Cairo has long been a centre of the region’s most acclectic handcrafted products, with carpets being one
of the country’s oldest traditional artforms. FARAH SHALABY PHOTO BY:
28 98 GRI 102-30, GRI 102-31 Sustainability Report 2019 99 5. RISK MANAGEMENT FOR SUSTAINABILITY
OUR RISK MANAGEMENT FRAMEWORK CONTINUES TO BE AN INTEGRAL COMPONENT OF OUR ACTIVITIES. WE OPERATE ACCORDING TO INTESA SANPAOLO GROUP’S COMPREHENSIVE RISK MANAGEMENT GUIDELINES, WHICH ARE IN ALIGNMENT WITH INTERNAL REGULATORS. MANAGEMENT DECISIONS ARE INFORMED BY REGULAR RISK REPORTS, ASSESSMENTS AND RECOMMENDATIONS THAT ARE PRESENTED TO THE BOARD OF DIRECTORS, RISK COMMITTEES, AND MANAGEMENT COMMITTEES.
Our efforts to promote sustainable growth have evolved to embed a dynamic risk management system. It is a cornerstone in our decision-making processes and is facilitated by automated analytical models. The Risk Appetite Framework (RAF) is a core component of our approach to risk management, which better aligns our overall corporate strategy, capital allocation and risk monitoring. ALEXBANK ensures effective implementation of the RAF through regular monitoring, assessment and analysis for any deviation from strategy, ultimately ensuring long-term value creation for all our stakeholders.
Despite, or maybe because of, our dynamic operating environment and the fast-paced changes we experience, including those of a regulatory nature, technological advances, macroeconomic disruptions, emerging risks types, and continuous enhancement of our own risk management framework, we are able to report on the following achievements in 2019.
Staircase forged using traditional artisanal methods at calligraphy haven “Al Qalam” (“The
Pen”) in the heart of historic Cairo. FARAH SHALABY PHOTO BY:
100 Sustainability Report 2019 101 5. RISK MANAGEMENT FOR SUSTAINABILITY29
5.1 Rule-Based Automated SME Products
AS WE STARTED ABIDING BY THE CENTRAL BANK OF EGYPT’S MANDATE REQUIRING THAT ALL BANKS INCREASE THEIR SME PORTFOLIO TO REACH 20% OF THEIR TOTAL LOAN PORTFOLIO, WE ADOPTED SEVERAL STRUCTURAL AND OPERATIVE MEASURES TO ADDRESS CHALLENGES IN RESPONDING TO THIS TARGETED CREDIT GROWTH IN ALIGNMENT WITH OUR INTERNAL RISK MANAGEMENT FRAMEWORK AS WELL AS INTESA
SANPAOLO GROUP GUIDANCE. HAYMAN AHMED BY: PHOTO
ALEXBANK proactively introduced a new rule-based product for the Small Business segments embedded in the Electronic Credit Application (ECA) covering different business needs for companies, dramatically reducing the time between loan application, approval and disbursal. This builds on the successful application of ECA for corporates and SMEs. Over 2020, with the finalization of the retail workflow, all Bank segments will be subject to a fully automated credit process. Furthermore, we have implemented the Early Warning System application for corporates, SMEs and Small Business segments, which allows for the proactive detection of potentially deteriorating clients following the adoption of the new default definition rules that were issued by the European Central Bank (ECB).
The rise and growing support for small businesses in Egypt has contributed to the country’s economic development.
29 102 GRI 102-30, GRI 102-31 Sustainability Report 2019 103 5. RISK MANAGEMENT FOR SUSTAINABILITY
5.2 Reputational Risk
OUR BOARD OF DIRECTORS ALSO APPROVED A NEW REPUTATIONAL RISK POLICY, IN LINE WITH OUR CODE OF ETHICS, IN JULY 2019. REPUTATIONAL RISK IS DEFINED AS THE NEGATIVE IMPACT ON THE BANK’S PROFIT AND CAPITAL DUE TO LACK OF COMPLIANCE WITH INDUSTRY SERVICE STANDARDS, FAILURE TO DELIVER ON COMMITMENTS, LACK OF CUSTOMER-FRIENDLY SERVICE, LOW SERVICE QUALITY, UNREASONABLY HIGH COSTS, A SERVICE THAT DOES NOT MATCH MARKET CIRCUMSTANCES OR CUSTOMER EXPECTATIONS, INAPPROPRIATE BUSINESS CONDUCT OR UNFAVORABLE AUTHORITY OPINIONS AND ACTIONS.
The policy defines and sets the rules governing In 2019, incidents pertaining to reputational risk were reputational risks faced by ALEXBANK across different presented to the Operational Risk Committee for the first lines of business and ensures that the culture of time. Consequently, four cases were communicated to the reputational risk is embedded across the Bank. ALEXBANK Operational Risk Committee, with immediate Accordingly, we actively work to prevent any negative actions identified and taken in appropriate time (noting that effects by identifying and assessing reputational none of the incidents resulted in ALEXBANK being penalized risk scenarios to which the Bank is exposed. A new by the Central Bank of Egypt). Incidents pertaining to the last Reputational Risk Scorecard Model was adopted to quarter of the year will be presented in the first Operational calculate reputational risk capital requirements. Risk Committee meeting in 2020. PHOTO BY: MOHAMED EL GENDY MOHAMED PHOTO BY:
Colourful handmade carpets by artisans in Cairo as part of our “Ebda3 men Masr” initiative.
104 Sustainability Report 2019 105 5. RISK MANAGEMENT FOR SUSTAINABILITY
5.3 Operational Risk30
THE YEAR 2019 ALSO WITNESSED OUR SUCCESS IN EMBEDDING A ROBUST OPERATIONAL RISK CULTURE ACROSS THE BANK THROUGH FURTHER DEVELOPING SOLID MONITORING TOOLS AND POLICIES, ENSURING THE SEGREGATION OF DUTIES, AND GUARANTEEING THE CONSIDERATION OF OPERATIONAL RISK WITHIN CORE ACTIVITIES, PRODUCTS, PROCESSES AND SYSTEMS ACROSS BUSINESS LINES.
Key Risk Indicators related to Human Resources, Processes, Fraud and external events, Information Security and the GAF Report were identified and submitted to the Operational Risk Committee to ensure regular monitoring. To further streamline operational risk management across diverse organizational units, the new role of ‘Business Line Operational Risk Managers’ (BLORMs) was created to prepare and update the regulations necessary for operational risk management within their own organizational units as well as to ensure the collection and reporting of information concerning operational risks is up-to-date in order to guarantee the effectiveness and timeliness of mitigation actions related to critical issues. To strengthen awareness and understanding of the significance of operations risk issues, an online awareness training module and quiz were disseminated to all bank employees and several classroom sessions were conducted to train 179 branch managers and regional area managers. Additionally, operational risk is a topic included in the induction program for all new hires.
ALEXBANK is implementing a centralized automation process for all regulatory reports. This reinforces the enhanced application and monitoring of our governance frameworks, resulting high accuracy of data with minimal human error. PHOTO BY: FARAH SHALABY PHOTO BY:
For more information on our governance structure and risk Scattered across the hallways of the Al Qalam mitigation framework, please refer to ALEXBANK’s 2017 and (The Pen) classrooms, student art pieces can be 2018 Sustainability Reports. found on display in every corner.
30 106 GRI 102-34 Sustainability Report 2019 107 The “Tawazun” (“Balance”) farm in Siwa, where produce is grown using “Over the years, ALEXBANK’s Risk sustainable agricultural methods. Management Framework has transformed from a purely second level defense role to a proactive source of assistance that enables the progression of our commercial opportunities and digital transformation.” PHOTO BY: MOHMED EL GENDY
Khaled Hegazy Head of Risk Management Department
108 Sustainability Report 2019 109 110 PHOTO BY: MOHAMED ELGENDY 6. OPERATIONS OPERATIONS SUSTAINABLE ENSURING Sustainability Report 2019Sustainability was taken in Qena, where community members depend on on depend members community where Qena, in taken was belonging to our “Ebda3 men Masr” network. This picture picture This network. Masr” men “Ebda3 our to belonging An array of traditional tools used by Egyptian weavers weavers Egyptian by used tools traditional of array An this ancient craft for their livelihoods. livelihoods. their for craft ancient this 111 PHOTO BY: NOUR EL DIN At a Siwan date factory, where women are provided with career development opportunities under the "El Tareek" project. PHOTO BY: MOHAMED ELGENDY MOHAMED PHOTO BY:
Ashraf Hamed Head of Customer Satisfaction “The Customer Satisfaction Office firmly believes in incorporating a strong value- based framework within its internal governance processes in order to address customer complaints.”
112 Sustainability Report 2019 113 6. ENSURING SUSTAINABLE OPERATIONS
6.1 PLACING EMPHASIS ON SATISFACTION IS NOT SOLELY LIMITED TO 6.1 Customer Protection OUR PRODUCTS BUT EXTENDS TO THE HEALTH AND SAFETY OF 31 OUR CUSTOMERS. AS SUCH, WE HAVE A DEDICATED TEAM THAT & Satisfaction ENSURES ALL REGULATIONS ARE CLEARLY CIRCULATED AND ARE BEING MET BY ALL STAKEHOLDERS.
This year, and in response to the Central Bank of Egypt’s newly enacted rules concerning the Banking Consumer Protection Rules, we conducted a deep analysis to identify areas in need of further observation and development, revealing a limited need for intervention due to the advanced approach established prior. Consumer protection rules are well observed through a comprehensive and stringent framework, considering the principles contained in the Group rules for consumer protection in addition to compliance with the national regulatory context framework. Our internal rules on the matter were approved by the Board of Directors in March 2019. The action plan for the implementation of the rules for customer protection will be fully implemented by the first quarter of 2021.
This year, to enhance our customer data protection processes, we are examining the possibility of adopting and implementing the European General Data Protection Regulation (GDPR) in cooperation with Intesa Sanpaolo Group and ALEXBANK’s business partners. Moreover, an e-learning course on consumer protection and rights was circulated to all Bank employees who are directly and indirectly engaged with customers. The training aimed to raise staff awareness on internal rules and Central Bank of Egypt requirements to better approach consumer rights.
In terms of customer privacy breaches32, we are pleased to report that there have been no leaks, thefts, or losses of customer data.
In alignment with our parent company Intesa Sanpaolo Group, our approach to handling complaints is built on the establishment of strong communication channels with our clients that enable all members of our community to raise their grievances and address their concerns. Customers can receive direct and instant assistance for inquiries and requests through our Contact Center. Moreover, clients are able to submit their written complaints via the dedicated channels in place. All relevant complaints and inquiries are referred to the Customer Satisfaction Office, in order to State of the art facilities at the ALEXBANK Kasr-El Nil branch, both manage and report on them in accordance to national welcoming clients and employees daily. regulatory framework requirements.
31 32 114 GRI 418-1 Sustainability Report 2019 GRI 418-1, GRI 416-1, 115 Threads in a loom to make carpets, a labor-intensive craft. One carpet can take years to produce. PHOTO BY: MOHAMED ELGENDY MOHAMED PHOTO BY:
“ALEXBANK’s ‘Consumer Protection Rules for Individuals’ were created in alignment Mohamed ElBedawey Head of Regulatory Alignment Unit with the Central Bank of Egypt’s instructions and approved by the Bank’s Board of Directors. The Rules allow us to better monitor and target activities on a monthly basis.”
116 Sustainability Report 2019 117 6. ENSURING SUSTAINABLE OPERATIONS
ALEXBANK employees are the driving success behind our commitment to providing all members of our communities with the services they need.
Over the years, our Customer Satisfaction Office has In 2019, the total number of written complaints was 768, Our Contact Center closely collaborates with other relevant We closely monitor the effective application of our ethical undertaken multiple measures to address and resolve representing 0.86% of total complaints received, while the functions to handle complaints and grievances related to complaints’ handling and management scheme on a monthly client concerns. Their ability to do so is credited to number of complaints related to the Central Bank of Egypt our rapidly expanding digital services. To mitigate recurring basis; and a bi-annual report is shared with the parent analytics reports that are regularly produced to outline and I-Score Company was 356. These complaints were related issues pertaining to card connections, the Information company Intesa Sanpaolo. Colleagues involved in the common concerns and identify solutions to better address to the areas of lending, accounts, and deposits and were Technology Department introduced a new automated management of complaints receive tailored training sessions complaints. In 2019, complaints pertaining to cards were handled according to the Bank’s rules and regulations for the solution resulting in the decline of complaints. The E-Banking to solidify their understanding of the matter, deepen their reduced through introducing new initiatives, such as management of complaints. activation delays surfaced as a serious issue, which has critical listening skills, and in turn their ability to detect renewing cards two months prior to their expiration date to resulted in the revisiting of the activation process to ethical complaints. Furthermore, our contact information avoid delays and enhancing delivery services. facilitate the process as a result. is available on ALEXBANK’s official website in the Contact Us section, providing interested individuals with other In order to accurately determine the nature of customer communication options in addition to our Contact Center concerns, we introduced a system to create distinctions number. between complaints and requests. In parallel, we are working towards enhancing our customer’s experience with the Contact Center by ensuring that appropriate escalation measures, aligned with our escalation matrix, are taken to address complaints that have not been resolved in a timely manner.33
33 118 Sustainability Report 2019 GRI 102-33 119 6. ENSURING SUSTAINABLE OPERATIONS
6.2 Supply Chain Management34
IN AN EFFORT TO SUPPORT EGYPTIAN BUSINESSES, WE PRIORITIZE LOCAL SUPPLIERS BASED IN EGYPT. FOREIGN SUPPLIERS ARE ONLY RELIED UPON IN RARE INSTANCES WHEN NEEDED, PRIMARILY FOR INFORMATION TECHNOLOGY LICENSES. TODAY, WE ARE PROUD PARTNERS WITH 230 SUPPLIERS.
Beyond supporting local suppliers, we realize the impact ISO 9001-2015 that our procurement processes can have on our overall performance and sustainability footprint. We introduced the This year, we obtained the ISO 9001-2015 certificate in Procurement Centralization Project to create a database Procurement and Sourcing. The procurement department of all of our vendors and suppliers and developed a cost has since collected feedback from all relevant functions on management sheet to ensure efficient interactions with the quality of services provided and the overall procurement all suppliers. Additionally, the Procurement Department in process in order to introduce adequate corrective measures collaboration with the Operational Risk Unit are working that meet the expectations of all partners. The survey will towards updating our Procurement Policy to include more be conducted on a semi-annual basis, as per ISO 9001-2015 stringent risk mitigation mechanisms when it comes to the requirements. selection and handling of suppliers. PHOTO BY: MOHAMED ELGENDY MOHAMED PHOTO BY:
In alignment with Intesa Sanpaolo Group, all contractors and Digitalization suppliers are required to abide by all relevant Egyptian laws and regulations. In the case of violation, we turn to Egypt’s In an effort to expand digitalization across Bank functions, legal system for resolution. Furthermore, we investigate the Procurement Department capitalizes on multiple Oracle the reputation of every new supplier, including a complete platforms including: due diligence, prior to supplier registration or contract Oracle Enterprise Resource Planning Cloud (ERP); an authorization. We include a clause in all contracts with • item-procurement system provided to digitally handle the all vendors that ascertain the supplier’s compliance with entire procurement process. Egyptian legislation and regulations; we have also added a clause explicitly banning child labor in all our contracts. • Oracle Procure to Pay; a service that allows for automatic Given the local operating environment, we are not able to management of all document approvals. This service screen suppliers against other best Environmental, Social and is being gradually streamlined across the Bank, as we 35 Governance (ESG) criteria. are currently addressing two main challenges: lack of awareness, and access to the software. A structured training plan will accompany the service’s introduction in 2020.
The full digitalization of our workflow, and in turn minimization of paper consumption, is planned for the year 2022. Women taking part in a “Kilim” workshop under our "El Tareek" (“The Road”) project in Siwa. A “kilim” is a tapestry-woven carpet or rug produced by a traditional flat-weaving technique.
34 35 120 GRI 102-9, GRI 102-10, GRI 204-1, GRI 308-1 GRI 408-1, 409-1 Sustainability Report 2019 121 122 7. WELFARE ENVIRONMENTAL Sustainability Report 2019Sustainability greenery are considered a crucial element of a healthy and and healthy a of element crucial a considered are greenery At the “Banati” (“My Girls”) Foundation, nature and and nature Foundation, Girls”) (“My “Banati” the At balanced environment forstudents. 123 PHOTO BY: FARAHPHOTO SHALABY BY: NOUR EL DIN AT ALEXBANK, ENVIRONMENTAL WELFARE IS CENTRAL TO BUSINESS OPERATIONS. THIS IS LARGELY DUE TO THE INFLUENCE
OF OUR PARENT COMPANY INTESA SANPAOLO GROUP THAT FARAH SHALABY PHOTO BY: PLACES GREAT EMPHASIS ON SUSTAINABILITY WITHIN CORE OPERATIONS. SINCE 2012, THE BANK HAS ACTIVELY IMPLEMENTED THE EQUATOR PRINCIPLES ACROSS BUSINESS OPERATIONS, STRIVING TO DEVELOP A SUSTAINABLE BUSINESS MODEL THAT SUPPORTS RENEWABLE ENERGY, LOCAL INDUSTRIES AND AWARENESS CREATION. IN 2019, ALEXBANK FUNCTIONS WORKED IN CLOSE COLLABORATION TO PROMOTE RESPONSIBLE BUSINESS, BUILDING A FOUNDATION THROUGH WHICH TO PROMOTE SUSTAINABLE PRACTICE MOVING FORWARD.
“Our long-term vision to avoid contributing to the scarcity of natural resources is embedded in our strategic Alaa Gaafar Head of Real Estate Department planning, as we believe sustainability is the defining framework for this century.”
The gardening center at the “Banati” (“My Girls”) Foundation, where young girls are introduced to basics of gardening.
124 Sustainability Report 2019 125 7. ENVIRONMENTAL WELFARE
7.1 Our Direct Environmental Impact
Energy Consumption 36
Our Real Estate Department introduced new measures to promote sustainability across its branch network in 2019. To reduce the environmental impact associated with cleaning products, the housekeeping team has shifted to using greener cleaning products. This shift enables us to ensure the safety of the environment and the community and fosters strong partnerships with sustainable businesses in Egypt.
Measures are also set in place to promote energy efficiency. Our Real Estate Department introduced an initiative focused on lighting to rely on the most energy-saving fixtures.37 Thus far, existing lighting fixtures in Magnifica Lounge Private Lounge Cairo, Garden City, Hurghada, Banha, Nabaroh and Kafr El Zayat Branches were replaced with LED lights. Moreover, LED lighting fixtures were installed in our Loran, Arkan, New Maadi, and Almaza branches. Alongside the LED lighting fixtures, occupancy lighting sensors were installed in the Magnifica Private Lounge at our Cairo Branch as well as the activation of management and control systems for switching systems on and off. Thus far, the transition to LED has prompted annual energy savings of 53,468,125 KWH and an estimated CO2 reduction of 28,712 tons.
We have been working on replacing high consumption printing machines with more energy efficient models since 2018, known as multifunction printers. Our plan is to complete the switch to energy efficient models across our entire branch network over the coming years.38 These Plants grown by the young girls at transitional efforts aim to further facilitate the Bank’s goal “Banati” (“My Girls”) Foundation of promoting a paperless culture across the Bank. Moreover, as part of an exercise to connect
PHOTO BY: FARAH SHALABY PHOTO BY: we have begun assessing our selection of printing machine adolescents with nature. vendors based on the environmental criteria considered in their design and operation.
36 37 38 126 Sustainability Report 2019 GRI 302-1, GRI 302-2, GRI 302-3 GRI 302-4, GRI 302-5 GRI 302-3, GRI 302—4, GRI 302-5 127 7. ENVIRONMENTAL WELFARE The Association for the Protection of the Environment (A.P.E.) overlooks the Man- sheyet Nasser district seeking to benefit the communities residing there. Waste Management 39
TO MINIMIZE THE BANK’S CONTRIBUTION TO EGYPT’S WASTE PROBLEM, WE INTRODUCED A NEW WASTE MANAGEMENT INITIATIVE APTLY TITLED WASTE-LESS.
Through WASTE-LESS, the Bank will transition from conventional waste management and wasteful consumption trends towards a more sustainable approach to managing the waste we produce in three of our main premises. Coupled with frequent awareness raising activities, the initiative also aims to establish enhance employees’ awareness of the waste they produce, and its impact on their health and the environment. PHOTO BY: AHMED HAYMAN AHMED PHOTO BY:
128 39 GRI 306-2 Sustainability Report 2019 129 7. ENVIRONMENTAL WELFARE Soil pots at the “Banati” (“My Girls”) Foundation gardening center that will be nurtured by the students until they grow. Fuel Consumption PHOTO BY: FARAH SHALABY PHOTO BY:
IN THE LAST FIVE YEARS, Figure: Fuel Consumption of Bank Vehicles over Time ALEXBANK REDUCED ITS Year 2016 2017 2018 2019 BUSES TRANSPORTATION Gasoline 42,000 liters 22,249 liters 20,187 liters
71,357 (decrease (further (further FLEET FROM 53 BUSES by 42% vis- reduction by reduction by à-vis 2016) 47% vis-à-vis 9% versus TO NINE BUSES IN 2018 2017) 2018) AND EIGHT IN 2019 IN Diesel 153,167 liters 126,872 liters 77,932 liters FAVOR OF OUTSOURCING Fuel (decrease (further (further 213,006 by 28% vis- reduction by reduction SERVICES, RESULTING à-vis 2016) 17% vis-à-vis by 39% vis- IN A SIGNIFICANT 2017) à-vis 2018) CONTINUOUS DECLINE IN FUEL CONSUMPTION. Figure: Number of Bus Subscribers City 2017 2018 2019
Today, the fleet covers Cairo and Alexandria, Cairo 692 724 632 serving 820 employees. Expanding our reliance on the rental of new buses for employees Alexandria 216 216 188 has proven to be more efficient in terms of quality of service provided to employees, in Total 908 940 820 addition to cost efficiency and a moderate fuel consumption. Although detailed information about the fuel efficiency of our vehicles is currently unavailable, we acknowledge the impact of our transportation fleet in contributing to GHG emissions. Despite the direct contribution of fuel to our carbon footprint, consumption has declined over the years. In 2016, the Bank consumed 71,357 liters of gasoline and 213,006 liters of diesel fuel. In 2019, and in line with the directives to outsource transportation services no new cars have been purchased and gasoline consumption declined 71% to reach 20,187 liters and diesel consumption fell by 63% to reach 77,932 liters. The current number of vehicles owned by the Bank stands at 13 with plans to reduce it further. 40
40 130 Sustainability Report 2019 GRI 305-5 131 7. ENVIRONMENTAL WELFARE
Paper Consumption
An Egyptian farmer is seen making his way through the jewelled
countryside influencing the art being produced in Qena. ELGENDY MOHAMED PHOTO BY:
Figure 10: Paper Consumption in 2018 and 2019 Although our paper consumption increased by 44.6% In an effort to address high paper consumption, we have from 2018 to 2019, this mostly comes as a result of the been collecting archived paper to be shredded yearly and 2016 2017 2018 introduction of new branches, as well as an anticipated later recycled by an external company which purchases Paper Purchased 22,426 boxes 26,436 boxes 21,168 boxes increase in demand during the final quarter. this paper with 2019 logging in 122,321 tons of recycled paper. Despite being unable to implement a complete Shredded Paper Waste 113 tons 115 tons 137 tons* To sustainably reduce paper consumption, our Procurement paperless system due to Central Bank of Egypt guidelines, we Department undertook various studies to assess paper constantly work towards enhancing our consumption habits consumption trends. The study concluded that using A5 and eliminating our paper waste.41 For the upcoming years, we paper instead of A4 paper in printing cash deposit and are aiming to foster a less paper environment and eliminate withdrawal forms would reduce paper consumption by 50%. paper waste by including the offices’ daily paper waste Additionally, toner expenses would decline by between 10 into the normal document shredding process ultimately in to 20%. In coordination with all concerned functions, the collaboration with social enterprises leading to a maximized pilot phase will be launched. In parallel, our Information economic and social return for both the Bank and the Technology Department is working towards introducing a community respectively. default double-sided printing system, which will reduce paper consumption by a further 30%.
The previous edition of ALEXBANK’s Sustainability Report misrepresented the 2018 figures (21,168 boxes vs. 41 132 21,606 boxes). In this 2019 Sustainability Report, the 2018 figures have been amended to reflect this. Sustainability Report 2019 GRI 302-3, GRI 302-4, GRI 302-5 133 7. ENVIRONMENTAL WELFARE
7.2 ALEXBANK receives recognition at the Green Economy Financing Facility (GEFF) Awards Ceremony for Corporate Sustainability and growing efforts to financially support Our Indirect Environmental Impact initiatives and projects seeking to better the environment.
In alignment with the Equator Principles, Reporting to Our Supranational Green Economy Financing Facility (GEFF) – IN ORDER TO REDUCE the guidelines ensure the projects we Stakeholders Corporate Sustainability Award ENVIRONMENTAL AND SOCIAL support are developed and implemented in an environmentally and socially Supranational reporting has been a part of our In 2019, ALEXBANK was the proud recipient of the Green (E&S) RISKS ASSOCIATED responsible manner. The guidelines were environmental governance framework for over two Economy Financing Facility (GEFF) award for corporate WITH PROJECT FINANCING AND approved by the Board of Directors in years. Our partners include the International Finance sustainability, recognized as one of the most active July 2019 and we began training sessions Corporation (IFC), European Bank for Reconstruction financial institution (FI) participants for supporting Egypt’s LOANS, WE ARE COMMITTED TO for relevant internal stakeholders to and Development (EBRD), Finance in Motion, and the green economy transition through sub-financing both introduce the guidelines and how they European Investment Bank (EIB). In 2019, we reported energy efficiency projects as well as small-scale renewable IMPLEMENTING THE GUIDELINES can be implemented. on our environmental and social (E&S) performance energy investments for private sector businesses through FOR THE IMPLEMENTATION OF to multiple supranational entities. These reports take advanced technologies and practices. into consideration ALEXBANK E&S performance when EQUATOR PRINCIPLES IN MANAGING granting loans as well as internal operations and Two participating Egyptian companies from ALEXBANK policies. This allows us to find out more about what sub-borrower portfolios were awarded for using GEFF ENVIRONMENTAL & SOCIAL RISKS we need to improve when it comes to E&S related technical assistance and financing. The two SME companies AND/OR IMPACTS WHEN GRANTING issues and inspires us to work harder to overcome any were Tahrir Mills and Berzi for plastic. This comes on the shortcomings or challenges. occasion of the first Annual Awards Ceremony hosted by LOANS LOCALIZED TO MIRROR INTESA GEFF Egypt on in 2019 to shed light on Egyptian companies and participating financial institutions promoting SANPAOLO GROUP’S POLICY. sustainable energy financing in Egypt.
134 Sustainability Report 2019 135 “We have begun increasing our lending to high value projects in the field of renewable energy and recycling. In recognizing their importance, we will be increasing our support over the coming years to reflect the changes occurring around us.”
Basil ElShoubary Head of Corporate & Medium Entrerprises Underwriting Office
Incredible growth and fullness of plants at “Tawzun’s”
(“Balance”) sustainable agriculture haven in Siwa. ELGENDY MOHAMED PHOTO BY:
136 Sustainability Report 2019 137 Abdalla Eid, the founder of "Tawazun" 7. ENVIRONMENTAL WELFARE (“Balance”) explores the field of his farm to gather fresh, organic produce. 7.3 Environmental Awareness
CREATING ENVIRONMENTAL AWARENESS IS ESSENTIAL TO ALEXBANK. WE ALWAYS AIM TO PROMOTE SUSTAINABLE DEVELOPMENT, ENCOURAGE CONSERVATION OF INVALUABLE NATURAL RESOURCES, AND FOSTER A CONNECTION TO THE NATURAL WORLD. AS SUCH, IN 2019, WE INTRODUCED MULTIPLE AWARENESS ACTIVITIES TO ENGAGE EMPLOYEES AND PROMOTE SUSTAINABLE PRACTICE.
Earth Day LinkedIn Environmental Awareness Campaign
Employees and their children were invited to attend a LinkedIn is one of ALEXBANK’s most popular online platforms, documentary screening of “A Plastic Ocean” to learn more boasting nearly 200,000 followers, most of whom are youth. about the impact of single use plastic on ecosystems. As such, we launched a monthly environmental awareness Across Head Offices, infographic posters on sustainable campaign. Posts highlighted the ease of adopting sustainable habits were hung for employees to see on every floor. habits through tips and information on local initiatives. Thus Moreover, employees were provided with an awareness kit far, the campaign’s posts have garnered over 1,000 likes. that consisted of a tote bag made of recycled material, a reusable water bottle and a how-to guide to sustainable living printed on recycled material.
World Environment Day Gamifying Environmental Awareness
World Environment Day is a global environmental event that In 2019, our CSR & Sustainable Development Office began has influenced the direction and sustainability efforts of developing ALEXBANK’s first environmental literacy card game both parent company Intesa Sanpaolo Group and ALEXBANK. for children. The game aims to introduce environmental To align with the 2019 theme “Beat Air Pollution,” we principles to public school students aged 9 to 12 years. To collaborated with local artist Amr Mosallam to create artwork ensure the game remains true to its message and our values; highlighting human activities contributing to air pollution. It it will be produced using sustainable material where possible was later shared on the Bank’s LinkedIn page and Intranet. and will be printed in braille, ensuring its accessibility to all Furthermore, a “Beat Air Pollution” themed Forsa Bazaar — a children. The game will be rolled out in 2020. monthly event that takes place at our head office to display the work of local artisans — was organized to promote sustainable and local products with lower travel emissions. To conclude the event, employees and their families were invited to attend a guided walking tour of Downtown Cairo and visit the Banque Misr Museum, with the purpose of
PHOTO BY: MOHAMED ELGENDY MOHAMED PHOTO BY: promoting activities that reduce their dependence on cars.
138 Sustainability Report 2019 139 While most students are taught to draw within the lines, the "In House Nurseries" teachers encourage children to venture outside.
8. CELEBRATING NOUR EL DIN SHERIF PHOTO BY: DIVERSITY AT ALEXBANK42
42 140 GRI 102-8, GRI 201-3 Sustainability Report 2019 141 8. CELEBRATING DIVERSITY AT ALEXBANK Some of ALEXBANK’s diligent team of employees, the core of our inclusive and productive culture. 8.1 Our Employees43
ONE ESSENTIAL CORNERSTONE UNDERPINNING ALEXBANK’S 26% FOUNDATION IS A UNIFIED CULTURE WHICH ENCOURAGES EMPOWERMENT, RESPECT, AND COLLABORATION IN ORDER TO 74% CREATE AND MAINTAIN AN INSTITUTION OF OUTSTANDING VALUE.
Accordingly, our employees are held in the highest regard. faceted challenges that are facing working women and young We combine our institutional policies of integrity, excellence, talents. The workshop was introduced to 135 female staff transparency, equality, individual values, and responsible members; additionally, we promoted 332 females during 2019. Male use of resources with our belief in serving our communities. Figure 11: ALEXBANK Employee Gender Breakdown, 2019 Female This approach ensures that we are accountable not only to We have 175 branches (171 operating branches and four our stakeholders, but also to all members of the community; foreign exchange offices and rep. offices) and all staff The table below illustrates the age breakdown of ALEXBANK employees in 2019: therefore, we must adapt, innovate, and engage daily. members are employed on a full-time basis. We are sympathetic toward medical cases and provide all employees Age Breakdown of Employees We follow local and international regulations and best with the necessary medical care. In 2019, we had a total of Row Labels Age=< 30 30
43 142 GRI 401-1, GRI 401-2, GRI 401-3 Sustainability Report 2019 143 9. CELEBRATING DIVERSITY AT ALEXBANK Over 50 30-50 Under 30
New Hires Pillars of CommunityShip
In 2019, we hired a total of 676 employees (43.93% female and 56.07% male). In terms of As previously mentioned, ‘CommUnityShip’ is at the core of every managerial positions, there are 85 male managers (81%), and 20 female managers (19%). decision we make, ensuring all employees gain recognition and support. This is done through addressing the pillars below: New Female Hires by Age Group & Region New Male Hires by Age Group & Region
0.44% 0.44% 2.37% 1.78% 0.15% 0.15% 1.78% 2.07% 100% 0.30% 100% 0.44% 7.84% 6.80% 3.99% 2.96% 2.07% 0.59% 5.03% 0.74% 0.89% 4.59% 90% 2.37% 90% 4.29% 0.74% INNOVATION 10.50% 4.29% 3.11% 80% 80% 1.48% 6.36% 3.99% 1.33% 70% 70% 13.61% 2.51% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% ADAPTABILITY 0% 0%
Head Office Head Office ACCOUNTABILITY East Delta Region East Delta Region West Delta Region West Delta Region North Cairo Region North Cairo Region South Cairo Region South Cairo Region Alex & Matrouh Region Alex & Matrouh Region Alex Canal & Red Sea Region Canal & Red Sea Region Canal & Red North Upper Egypt Region North Upper Egypt Region North Upper Egypt South Upper Egypt Region South Upper Egypt Region South Upper Egypt Turnover
In 2019, a total of 690 employees left ALEXBANK (20.29% female and 79.71% male). The breakdown by age group and region is as follows:
EMPOWERMENT Female Turnover by Age Group & Region Male Turnover by Age Group & Region RESPECT 100% 100% 90% 90% 80% 80% 0.72% 0.58% 70% 0.14% 70% 1.45% 60% 6.38% 0.43% 60% 0.14% 0.14% 50% 0.14% 0.14% 50% ENGAGEMENT 0.87% 0.43% 4.20% 23.33% 40% 0.29% 0.29% 40% 3.19% 5.07% 0.14% 30% 30% 5.36% 3.33% 4.49% 3.48% 10.43% 1.30% 20% 20% 1.01% 0.14% 0.72% 4.06% 1.01% 5.22% 3.62% 0.87% 0.87% 0.14% 0.29% 0.14% 10% 10% 0.43% 0.58% 0.29% 2.90% 0.29% 0.43% 0.29% 0% 0% 0.14% Head Office Head Office East Delta Region East Delta Region West Delta Region West Delta Region North Cairo Region North Cairo Region South Cairo Region South Cairo Region Alex & Matrouh Region Alex & Matrouh Region Alex Canal & Red Sea Region Canal & Red Sea Region Canal & Red North Upper Egypt Region North Upper Egypt Region North Upper Egypt South Upper Egypt Region South Upper Egypt Region South Upper Egypt
144 Sustainability Report 2019 145 8. CELEBRATING DIVERSITY AT ALEXBANK
8.2 Training and Development44
In particular, in 2019, ALEXBANK provided 8,024 training OVERALL, IN 2019 A TOTAL OF opportunities to employees on topics relevant to compliance. Of those, 5,323 were held in a classroom setting and 2,701 were provided through e-learning. The topics covered included, among others, customer protection rules, 4,075 compliance ethics, money laundering, and accepting gifts. Our classroom training encompassed the following programs:
• 27 Advanced training opportunities were offered to the • 148 Training opportunities were provided to Branches Compliance team by EMLCU Experts Managers on the AML system “DETECA” EMPLOYEES • 228 Training opportunities were offered to outsourcing • 118 Training opportunities were offered to Branches (94% OF THE POPULATION) HAVE BEEN COVERED BY THE staff regarding AML/CFT & ABC, FATCA and the Bank’s Code Compliance Officers “BCO” of Ethics TRAINING PROGRAMS CONDUCTED ACROSS THE YEAR • 172 Training opportunities were offered to Branch • 124 Training opportunities were offered to control Managers regarding AML/CFT & ABC, and Sanctions in EQUALING TO AN AVERAGE OF function staff (Audit team and Frist level control team) addition to compliance Ethics
• 1,182 Training opportunities were offered to Network • 910 Training opportunities were offered to Bank staff staff and Head Office staff at the end of on-site visit, in regarding FATCA recommendation the places where they work • We provided training opportunities through e-learning in • 675 Training opportunities were offered to Bank staff the field of Compliance, AML/CFT & ABC: regarding Central Bank of Egypt and Intesa Sanpaolo Group Customer Protection rules for branches customer • 438 Participated in the training course related to Gift 37 HOURS service officers and contact center outsourced staff. Policy • 1,155 Training opportunities were offered to Network • 235 Participated in the training course related to AML/ PER EMPLOYEE. staff and RMs regarding AML/CFT&ABC & Sanctions CFT, Sanctions Rules & FATCA • 250 Training opportunities were offered to bank staff • 890 Participated in the training course related to IN 2019, OUR INVESTMENT IN TRAINING AND regarding Compliance Ethics Customer Protection DEVELOPMENT AMOUNTED TO EGP 13.9 MILLION TO • 334 Training opportunities were provided to the New • 1,138 Participated in the training course related to Hires employees regarding AML/CFT & ABC and Bank Codes Western Union fraud DELIVER A TOTAL OF 152,304 OF TRAINING HOURS. “Ethics & Conducts”
44 146 GRI 404-1, GRI 404-2, GRI 404-3, GRI 412-2 Sustainability Report 2019 8. CELEBRATING DIVERSITY AT ALEXBANK PHOTO BY: NOUR EL DIN SHERIF PHOTO BY:
As part of the Champions Teachers Program, wom- en learn to enhance their teaching skills to better promote an empowered generation of Egyptians
Training45 Opportunities in the field of A course designed to acquire the necessary skills to detect Training46 in the field of Preventing A course designed to enable participants to recognize and Detecting Forgery and Falsification forged currency and falsified documents was attended by Bribery/Anti-Money Laundering (AML) prevent bribery and money laundering in their daily work 434 ALEXBANK employees. Actual cases were used to support was attended by 3,116 ALEXBANK employees. The course was the training. presented with a special focus on the Bank policies and procedures. The main topics were as follows:
• AML/CFT & ABC Rules
• KYC Rules and CDD
• Reporting & Red flags
45 46 148 GRI 205-2 Sustainability Report 2019 GRI 205-2 149 ALEXBANK’s Training team is committed to providing female employees with skill enhancement support to both excel in the workplace and beyond.
ALEXBANK’s first employment fair ‘Azm’ (‘Determination’) bringing people of all ages together for an inclusive marketplace 8. CELEBRATING DIVERSITY AT ALEXBANK
Health and Safety Training47 Disability Equality Training
391 employees took part in training relative to In conjunction with the construction being undertaken to “Health and Work Safety” with the purpose of create accessible branches, we scheduled two Disability achieving the following objectives: Equality training sessions for an average of 30 targeted employees at the renovated branches to take place in 2020. • Secure the health, safety, and welfare of The training aims to promote employee awareness on ethical employees and other people at work. workplace behavior to promote the successful integration of • Protect the public from the health and safety the differently abled. risks of business activities.
• Eliminate workplace risks at the source.
• Prevent workplace injuries, illnesses, and fatalities.
• Develop detailed plans that provide guidance in the event of an accident, fire, natural disaster, or any other emergency.
47 150 GRI 403-1, GRI 403-2, GRI 403-4 Sustainability Report 2019 151 “It was a pleasure collaborating with 8. CELEBRATING DIVERSITY AT ALEXBANK Azm: Inclusive Employment ALEXBANK in organizing Azm Inclusive Opportunities & Training
Azm, translated as “Determination,” was aptly selected as a employment seekers, this forum provided a platform for Career Day for jobseekers with title for the first forum serving persons with disabilities to discourse involving the challenges faced in the workplace assist them in overcoming the obstacles they face, penetrate by people with disabilities and the opportunities to mitigate disabilities. We work to provide equal the labor market, and move toward responsible business these challenges via ethical business practices and interview practices. The forum is a joint initiative by the ALEXBANK techniques. While the event was an ALEXBANK-led initiative, People Management & Development Office and the CSR all banks operating in Egypt were invited to participate in opportunities to everyone in the job and Sustainable Development Office; and is held under the Azm. There were 13 employees who volunteered to take part auspices of the Ministry of Social Solidarity in partnership in the Azm program, and ALEXBANK recruited 15 employees market and could not find a better with Helm, and Shaghalni. Azm was held on July 20, 2019 with disabilities as a direct result of this event. partner towards this end. ALEXBANK at the Greek Campus. Attended by employers and 1,200 took this initiative and acted to advance the cause, and we at Shaghalni A representative of ALEXBANK’s Human Resources team speaking at “AZM”, ALEXBANK’s employment fair and preach- are proud to collaboratively take part in ing for equal opportunities in the workplace. Azm’s Success.”
Omar Khalifa Founder and CEO of Shaghalni
152 Sustainability Report 2019 153 8. CELEBRATING DIVERSITY AT ALEXBANK Our first edition of inclusive employment fair, 8.3 “AZM”, showcased the work of a collection of products made by Egyptian artisans as part of our “Qesetna Fi Herfetna” initiative. Our Internship Programs
Figure 18: Summer Internships by Region
14% 11% 6%
12% 12% South Upper Egypt Region East Delta Region Head Office North Cairo Region West Delta Region 8% Alex & Matrouh Region South Cairo Region 11% Canal, Sinai & Red Sear Region North Upper Egypt Region 14% 12%
Number of Interns (per position) 0 2 4 6 8 10 12
Credit Administration 10 8.4 Legal 1 Our Internal Communication Channels PMO 2 Internal Communication Intranet Digital Banking & Marketing 3 To ensure smooth internal functions and that employees In addition to distributing vital information to all staff via are informed and aligned on a variety of issues and email, previous publications and announcements can be CSR & Sustainable Development 2 Central Bank of Egypt updates, the Human Resources accessed by all employees through our intranet. Gaining and Organization Department has deployed numerous the most from ALEXBANK’s intranet is addressed in orien- Organization 1 communication outlets. tations for new hires People Management & Development 6 Closer IC & Employer Branding A bi-weekly employee-led publication covering develop- Internship Positions Internship 3 ments is being undertaken by all Bank functions. The Compensation & Benefits and HR Ops publication is sent to all members of staff and previous 1 editions can be found on ALEXBANK’s intranet. Security & BCM 4 To ensure all employees are made aware of compliance ethics, ALEXBANK’s Compliance Department communicates Information Security 1 in effective ways to address concerns such as conflict of interest, corruption, AML topics, customer protection, Insurance 1 and FATCA requirements.48 Additionally, an awareness announcement concerning the Bank’s ethics and related Digital Channels 1 policies is shared on a regular basis by the compliance department with all Bank employees. Digital Financial Inclusion 1
48 154 Sustainability Report 2019 GRI 205-1, 418-1 155 PHOTO BY: AHMED HAYMAN AHMED PHOTO BY:
9. CREATING SOCIAL IMPACT & VALUE49
Threads and colors of ALEXBANK’s annual Ramadan bag celebrating the women of Sinai. This year, the theme of “Sinaweya” capturing the beauty of Sinai was made possible with the help of 750 empowered female artisans.
49 156 GRI 203-1, GRI 203-2 Sustainability Report 2019 157 9. CREATING SOCIAL IMPACT & VALUE After a long day of classroom learning, students say their goodbyes and eagerly wait to return next morning in Edfu.
OVER THE YEARS, WE HAVE BEEN WORKING TO PRODUCE A HOLISTIC DEVELOPMENTAL MODEL THAT CAN CREATE SHARED VALUE WITH VAST IMPACT ON THE COMMUNITIES IT OPERATES IN. THE SUCCESS OF OUR INITIATIVES, WHICH INCORPORATE SOCIAL, ECONOMIC AND ENVIRONMENTAL FEATURES TO OPTIMIZE OUR NOUR EL DIN SHERIF PHOTO BY: SUPPORT CAN BE CREDITED TO OUR COLLABORATIONS WITH DIVERSE MULTI-STAKEHOLDERS ALONGSIDE THE BANK’S CORE FUNCTIONS, GOVERNMENT ENTITIES SUCH AS THE MINISTRY OF Since 2018, ALEXBANK’s CSR & Sustainable Development Development Goals and Egypt’s national goals under the Office Strategy, which is tailored to maximize shared Egypt Vision 2030, and aligning with both national and SOCIAL SOLIDARITY AND THE CENTRAL BANK OF EGYPT, PRIVATE value creation over a four-year period, has been international sustainability guidelines. a guiding force in aiding our efforts to pioneer a SECTOR INSTITUTIONS, AS WELL AS LOCAL AND GLOBAL NON- fully-fledged sustainable community development The CSR & Sustainable Development Office is committed PROFIT ORGANIZATIONS SUCH AS THE SAWIRIS FOUNDATION FOR framework. The Strategy, which is largely influenced to advancing the Sustainable Development Goals, by Intesa Sanpaolo Group’s Four-Year Plan to establish to promote the social, economic and environmental SOCIAL DEVELOPMENT AND CARE. a sustainable business model for an institution that welfare of its communities in a manner that enhances serves its communities, directly tackles the Sustainable ALEXBANK’s business operations and economic growth.
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9.1 Our Flagship Initiative
“Ebda3 men Masr”50
LAUNCHED IN 2016, THE CSR & SUSTAINABLE DEVELOPMENT OFFICE’S FLAGSHIP INITIATIVE “EBDA3
MEN MASR” HAS PROVEN In partnership with the Ministry of Social Solidarity and TO BE A SUCCESS VALUE artisan welfare organizations, we utilized different means to support the creative economy. This has been achieved CREATION MODEL, AIMED AT through direct sales and marketing opportunities through both local and international exhibitions, facilitating EMPOWERING LOCAL ARTISANS convenient and inclusive sales opportunities by providing AND PRESERVING EGYPT’S artisans with ATMs and point of sale machines at discounted or no cost during exhibitions, empowering our artisan RICH HERITAGE THROUGH network through capacity-building and skill enhancement trainings as well as promoting rising handicrafts through our HANDICRAFTS. EGYPTIAN “Gifts with Impact” program. ARTISANS LAY OUT A UNIQUE To date, Ebda3 Men Masr has benefited approximately FOUNDATION FOR EGYPT’S 6,000 artisans and craftsmen and women across Egypt. The initiative leverages over 25 partnerships and collaborations ECONOMY, CONTRIBUTING ALEXBANK, among others, represented in Egypt at the between several institutions, NGOs, governmental entities as L’Artigiano In Fiera exhibition in Milan, where the country well as individuals, covering 27 governorates. Exhibitions have TO THE REVITALIZATION OF was the exhibition’s 2019 guest of honor. been held in Egypt in Cairo, Alexandria and Fayoum; in Dubai COMMUNITIES. and Sharjah in the United Arab Emirates; and in Milan, Italy.
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Gifts with Impact
Since 2016, ALEXBANK has maintained the tradition of preparing and presenting gifts to our employees, partners and clients with the purpose of showcasing Egypt’s diverse talents and empowering artisans.
“WITH A NEW CONCEPT AND IMPLEMENTING PARTNER EVERY YEAR, ‘EBDA3 MEN MASR’ TELLS THE STORY OF EGYPT’S ARTISANS AND THE HERITAGE THEY GUARD WITH THEIR HANDS AND HEARTS.”
Our “Gifts with Impact” reflect ALEXBANK’s commitment to responsible gift-sourcing and our aim to preserve and represent the beauty of Egyptian culture and authentic craftsmanship, while empowering and collaborating with Women are major contributors to Egypt’s handicrafts industry, and this was made more apparent during the our skilled artisans and the community at large. Over the development of our 2019 Ramadan Bag ‘Sinaweya’. past four years, our Annual Corporate Giveaways Project has directly impacted the lives of 354 artisans (75% of which are women). Indirectly, 2,000 individuals across eight governorates have been positively affected.
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Mary Saad, founder of Macrame.Rou7, working on “Horra” (“Free”), a collection of custom wall hangers to be gifted to valued partners under our “Gifts with Impact” initiative.
Annual Corporate Giveaways
As an annual tradition, our corporate giveaways represent These handcrafted products depict ALEXBANK’s CSR & Our premium category giveaway named “Horra” (meaning The laptop-sleeve was produced using genuine high-quality a key feature of the projects being undertaken by the Sustainable Development Office Strategy of empowering “Free”) is a handmade Macramé wall hanging made from leather, embroidered with beautiful patterns inspired by the CSR & Sustainable Development Office and are made by local communities through economic development and the pure Egyptian cotton. The Macramé, a revived craft, is a form surrounding scenery, and woven by the hands of 40 women our partners and collaborators seeking to enhance their principle of creating shared value. The project targeted more of textile produced using various combinations of knotting in Dahshur. The melange between leather and embroidery marketing and skill set through our capacity training forums. than 50 women in Dahshur, Assiut and other regions in Upper techniques and handmade by 14 women in the city of creates a new line of designs for those women. Since every In 2019, the CSR & Sustainable Development Office Egypt, producing uniquely handcrafted Macramé wall art and Assiut. The production time of every piece takes an average piece was handmade to preserve the authenticity of the designed and sourced 500 handcrafted Egyptian products. laptop sleeves. of 14 hours to cut, two hours to color and a day to dry, craft, the embroidery of each laptop sleeve tells a different followed by the treatment of wood with a specialized oven. story. Another giveaway was named “Reefiya” (meaning “Rural”).
164 Sustainability Report 2019 165 9. CREATING SOCIAL IMPACT & VALUE “ ”
Ramadan Bags “Sinaweya”
Since 2017, ALEXBANK’s CSR & Sustainable Development Office and People Management and Development Office have pioneered the tradition of presenting “yameesh” (dried fruits, nuts and ingredients custom to Ramadan tradition) in the form of a gift to employees, which aims to embed sustainable procurement practices across business operations and empower Egyptian artisans from the bottom of the pyramid and enterprises. Thus far, our Ramadan Bags have benefited 1,450 women from Giza, Fayoum, Sinai, Assiut, and Cairo.
In 2019, our yearly tradition of producing and distributing Ramadan Bags to our employees was inspired by the region of Sinai, a region that captures the hearts of those who visit, through our “Ebda3 men Masr” initiative.
The custom and uniquely embroidered bags titled “Sinaweya” (translating into “the girl from Sinai”) were the result of a mutual collaboration between three Egyptian associations: El-Fayrouz for Environmental & Social & Economic Services Association, the Development and Protection of Sinai Heritage and Environment Association as well as Baddara. Sinaweya was handmade by 700 craftswomen in Rafah, Al Toloul, Roman, Sheikh Zuwaid and Bir El Abd in North Sinai, and with the support of 50 craftswomen in Dahshour and Shobra El Kheima. PHOTO BY: AHMED HAYMAN AHMED PHOTO BY:
A celebration of Sinai’s rich culture handmade by the resilient women of the region. Introducing ALEXBANK’s 2019 Bag “Sinaweya”: A story by the women of Sinai.
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Among our “Abu Teeg” project’s chief goals, is to empower women to acquire carpet making skills to secure their economic future. Here depicted is a successful graduate of the carpet school, receiving her graduation certification.
Reviving Abu Teeg’s Carpet Industry for International Markets with the Sawiris Foundation for Social Development and the Egyptian Chamber of Handicrafts (2017-2020)
The Abu Teeg project was designed in December 2017 to enhance and promote carpet making in the city of Abu Teeg in Assiut in the Egyptian export-market. One of our most impactful projects yet, promoting Egypt’s carpet making industry has provided local handicrafters with a unique opportunity to gain both financial and employment stability. BY INVESTING 5% OF THE TOTAL REVENUES OF EACH PHASE OF THE PROJECT, WHICH TAKE PLACE EVERY QUARTER, IN TRAININGS AND CAPACITY- BUILDING PROGRAMS THE ABU TEEG PROJECT GREW TO EMPOWER A TOTAL OF 225 FEMALE ARTISANS ACROSS THREE TRAINING CENTERS.
The project will be concluded in February 2020, having produced 200m² of handmade carpets worth EGP 320,000, while creating new opportunities for the economic empowerment of its trainees who acquired the looms used in the training to independently produce their own carpets and ELGENDY MOHAMED PHOTO BY: sell them to local and international distributors.
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ALEXBANK’s employees were invited to attend the The project was designed by Al Qalam Foundation in Memorandum of Understanding signing ceremony at collaboration with ALEXBANK and was implemented Tawasol’s school in Istabl Antar where they were able to over a six-month period. In partnership with Al- attend a cultural performance by the students. Moreover, the Qalam Foundation, the project included professional Herfa Wa Tawasol (“Crafts and Bank’s donation will enable the children and women of the Al Khattat Al Monafez (“The Calligrapher”) with workshops and trainings for twenty individuals in Connection”) in Cooperation community to acquire skills that will aid them in their efforts Al-Qalam Foundation (July – December 2019) calligraphy on leather, eleven in Kufi calligraphy with Tawasol and Star Care Egypt to generate income for themselves and their families. and khayameya (traditional quilt work), as well as (2019 – 2020) TThe first initiative of its kind, “The Calligrapher” project was calligraphy workshops. Beyond enhancing calligraphy introduced to revive the art of calligraphy and public appeal skills, the workshops were designed to cover the TAWASOL HAS TAKEN THE towards it, recognizing its key presence in Egyptian history, principles of business and management skills, in order In 2019, ALEXBANK and Star Care Egypt joined Tawasol, an culture, and identity. The project aimed to promote a new to better equip artisans and enhance their capacity NGO seeking to empower Egyptian youth and families in INITIATIVE TO OFFER CHILDREN, form of artisanal artwork and empower new artisan groups to contribute to market offerings. In 2020, the Bank Istabl Antar through sustainable means such as education, AND ESPECIALLY DROPOUT within the “Ebda3 men Masr” network where they were be aims to continue its investments in the development employment opportunities through handicrafts, diverse able acquire additional artisanal skills to produce market of the art of calligraphy and embark on a new phase technical workshops as well as performing arts in Cairo’s STUDENTS, AN ESCAPE FROM standard products. of the project with Al Qalam Foundation. neighborhoods of Istabl Antar, Ezbet Khairallah, Batn El Baqara, and Moqattam. Inspired by the role of handicrafts A DREADFUL FUTURE IF LEFT as a means to social and economic empowerment, “Herfa Wa Tawasol” aims to build an annex to Tawasol’s existing WITHOUT ADEQUATE GUIDANCE. An example of artisanal workmanship community school, currently catering to 170 students, to We are proud of our partnership with ALEXBANK who shares supported by ALEXBANK. support a total of 500 future empowered Egyptians, providing the same interest to provide marginalized children access to integrated community resources. education, health and shelter.
The Bank’s donation will be funding one floor, dedicated The private sector and NGOs are the driving force behind to introducing handicrafts workshops. It is set to welcome a comprehensive development agenda and are the robust 500 community members and provide a safe and nurturing foundation that makes societies and economies thrive.” hub for students between 8 and 16 years of age. The Yasmina Abou Youssef, Founder of Tawasol for Developing initiative is designed to provide a well-rounded, government Istabl Antar "Finding partners who share the same passion accredited education that places emphasis on arts and as you is a very rare thing and with our partnership with handicrafts. The school is expected to provide students ALEXBANK we are able to achieve great work into making the with a multi-disciplinary experience spanning the three main lives of children that much better. Through our partnership categories of education, vocational training, and performing in Herfa we Tawasol we will be able to make the lives of boys arts. Additionally, health services that include free weekly and girls richer through offering them the space to learn checkups and funding assistance for operations will be and cultivate talent through a series of vocational trainings."
provided to students and community members. Omneya Hanna, Secretary General, Starcare Egypt FARAH SHALABY PHOTO BY:
ALEXBANK employees gather with “Tawasol” students after witnessing their performance celebrating Egypt’s ancient history. “THANKS TO EBDA3 MEN MASR, AL QALAM WAS ABLE TO CREATE VALUABLE OPPORTUNITIES TO DISPLAY ISLAMIC ART WITHIN THE ARTISAN AND HERITAGE EXHIBITIONS ORGANIZED OR SPONSORED BY ALEXBANK.”
We were also able to lend our support to a new generation calligraphy and Islamic decoration, studied in various of artists specialized in Islamic art through the program “The materials with contemporary and innovative designs.” Calligrapher”, which focuses on building the capabilities of Mohamed Wahdan, Founder of the Al QalamSchool for young artists and training them to properly adapt Arabic Arabic Calligraphy
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Qesetna Fi Herfetna (“Our Story, Our Craft”) in Partnership with the Sawiris Foundation for Social Development (2018 – 2021)
Qesetna Fi Herfetna launched in 2018 to promote inclusivity with disabilities through handicrafts training, in the Egyptian in Egypt’s creative economy through a holistic framework of governorates of Assiut, Aswan, Qena, and Sohag. The purpose support that includes specialized capacity building trainings of the project is to provide opportunities for artisans with tailored for specific disabilities, expand and diversify the disabilities to establish a presence in Egypt’s creative handicrafts community and expand sales and marketing industries, expand inclusive employment opportunities in platforms through diverse platforms. the arts through skill enhancement and capacity trainings as well as expanding the assistance network for people Under the auspices of the Ministry of Social Solidarity and with disabilities. Thus far, the project has resulted in the our flagship initiative “Ebda3 men Masr,” Qesetna Fi Herfetna training of 116 educators dealing with people with disabilities, launched in 2018 to promote inclusivity in Egypt’s creative management and financial reporting. Moreover, the project economy. Through developmental projects and events, delivered crafts trainings in accessories, crochet production this initiative leverages the ability to create an all-inclusive and provided 80 artisans living with disabilities with technical experience for beneficiaries, exhibitors, and attendees support and training. alike. Following the success of the first Qesetna fi Herfetna Christmas Bazaar in 2018, an inclusive exhibition that was 2019 marks the end of the Qesetna Fe Herfetna project; held under the auspices of Egyptian President Abdelfattah El- however, ALEXBANK and Sawiris Foundation will continue to Sisi to provide people with disabilities in Egypt’s handicrafts support the disabled artisanal communities. industry with representation, ALEXBANK and the Sawiris Foundation for Social Development introduced a second “I had the opportunity to participate in a number of edition in December 2019. The first of its kind in terms exhibitions and opportunities through the project of Qestena of sales and marketing opportunities for artisans with fi Herfetna, and I emphasized the importance of believing in disabilities, 40 artisans with disabilities from Cairo, Qena, the abilities of people with disability, creative craftsmen and Assiut, Aswan, Minia and Sohag participated, generating sales art; good opportunities I met many creative artists in the arts exceeding EGP 50,000. field, and the interaction was excellent with the organizers, and I still look forward to take more steps to adopt our In 2019, ALEXBANK and the Sawiris Foundation for Social ideas, our creativity, and the community.” Reda Fadl, Painter. PHOTO BY: FARAH SHALABY PHOTO BY: Development launched a project titled SETI, which stands for Support, Education and Training for Inclusion Center. In partnership with the Regional Association for Development and Enterprises as implementing partner, Yadaweya as crafts training partner alongside providing an online fair trade handicrafts store and SETI Center, inclusion training partner for people with disabilities, to empower artisans
Through Qesetna Fi Herfetna (“Our Story, Our Craft”), ALEXBANK is able to lend its supoort to the strengthening of an inclusive artisan industry in Egypt.
172 Sustainability Report 2019 173 Egyptian products proudly on display at 9. CREATING SOCIAL IMPACT & VALUE L’Artigiano In Fiera, Milan - one of the world’s largest international exhibitions.
Egypt is the Country of Honor at L’Artigiano in exhibition. Selected artists were chosen by the Bank’s Fiera (Milan, November 30 – December 8, 2019) partners Banque Misr, the Ministry of Trade and Industry through its implementing arm The Export Development In 2019, Egypt was the country of honor at Europe’s largest Authority, Expo-Link and the Italian Chamber of Commerce in handicrafts exhibition L’Artigiano in Fiera, in Italy. For the Egypt. A meticulous selection process and multiple trainings second year in a row, and under the auspices of the Ministry took place at the Ministry of Social Solidarity where the of Social Solidarity, ALEXBANK’s “Ebda3 men Masr” partners craftspeople were coached on European design trends, and Egyptian artisans took part in the exhibition, showcasing logistical requirements, display techniques and marketing their works on an international scale. The fair hosted its opportunities that they can use to maximize their sales at grand opening inside the Egyptian Pavilion in the attendance the exhibition. This resulted in a significant rise in sales of H.E. the Egyptian Ambassador to Italy, and H.E. the Consul compared to last year, with artisans reporting sales figures General of Egypt in Milan. The exhibition welcomed 1.3 witnessing a 159% increase from 2018. million visitors to explore the works of artists from over 100 countries. We are committed to contributing to the international growth of Egypt’s handicrafts community, recognizing the wealth of 50 Egyptian artists were selected from the “Ebda3 men our culture and history embodied in the art produced. We will Masr” network to represent Egypt and take part in the continue to empower Egyptian artists on a global scale and create value that will undoubtedly be shared.
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Diarna Egypt’s Biggest Annual Handicrafts Exhibition; Diarna 2019/2020
Since 2018, ALEXBANK has been chosen as the Ministry of Social Solidarity’s strategic partner in the field of handicrafts and the creative economy. In 2019, ALEXBANK took part in two editions of Diarna, an exhibition seeking to provide a wider platform for Egypt’s growing artisan community, while shedding light on a governorate’s unique craft. The first edition which took place from January 20th until February 5th, generated over EGP 6,000,000 in sales, showcasing PHOTO BY: FARAH SHALABY PHOTO BY: the work of 568 exhibitors from across the country. and celebrated Aswan and its Nubian traditions for advancing the handicrafts sector in Egypt. The second edition, celebrating the governorate of Fayoum, took place from December 16th and continued into 2020 until January 15th. The Fayoum edition featured over 350 exhibitors and generated a record- breaking EGP 9,000,000 in sales. Moreover, the exhibition aimed to be as inclusive as possible, with artists with disabilities celebrated as the guest of honor, and their role
Diarna aims to showcase and celebrate the diversity of Egypt’s in driving forward Egypt’s handicraft industry highlighted. The rising artisans as a core component of culture and society. exhibition was fully accessible through our partnerships with Helm Consulting and Al-Hassan Foundation. It also featured two ALEXBANK ATMs and Point of Sale machines to “Ebda3 men Masr” partners.
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El Masriya Catalogue in partnership with Sawiris Foundation for Social Development and the National Council of Women
In celebration of ALEXBANK’s partnership with the National Council of Women and the Sawiris Foundation for Social Development, a third edition of the “El Masrya” (“The Egyptian”) Catalogue was published to empower Egypt women in Egypt’s creative economy and is dedicated to providing a wider platform for female artisans. This year, ALEXBANK was able to feature 25 women in the third edition of the publication, seven of whom belong to the “Ebda3 men Masr” network. The publication is available online on the National Council for Women’s website.
Abeer Baddara, a longstanding partner to ALEXBANK and “Ebda3 men Masr” artisan featured with her products in “El Masriya”, a publication by the “National Council for Women”.
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Our Monthly Forsa Bazaar for Employees
Forsa Bazaar (which literally translates to ‘chance’ in Arabic) is a monthly bazaar for local artisans and enterprises to promote and sell their products at ALEXBANK’s headquarters. During its second year, the purpose of the Bazaar was to showcase the work of local artisans and provide a sales and marketing platform for Egyptian entrepreneurs. Additionally, it encourages exhibitors to formalize their business and go cash-less. Furthermore, each edition of Forsa features a social cause as well as a partner NGO working to alleviate cause with a percentage of the proceeds donated to the NGO. Forsa Bazaar has achieved a multi-function exhibition that both caters to the needs of Egypt’s rising entrepreneurs, as well enabled visitors to conveniently support local organizations such as Baheya Hospital, Hope Rescue and Move Foundation for Children with Cerebral Palsy. The 12 editions of Forsa in 2019 provided over 147 exhibitors with a platform to gain more exposure and supported 12 causes and eleven NGOs.
In celebration of Breast Cancer Awareness Month, ALEX- BANK’s monthly “Forsa Bazaar” marked its entrance with a pink ribbon made entirely from balloons, the international symbol for breast cancer awareness.
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At the “Yom Fi Masr” (“A Day in Egypt”) exhibition where hundreds of Egyptian artisans showcase their work and promote local products.
Yom Fi Masr (A Day in Egypt) – Global Stars
For the third year in a row, “Ebda3 men Masr” has supported “Yom Fi Masr”, an annual event that aims to provide a platform for local artisans working to preserve Egypt’s heritage through handicrafts. The 2019 edition of Yom Fi Masr, organized by Turath, welcomed 3,000 visitors to celebrate the work of 250 exhibitors from multiple entities working to empower the handicrafts community in Egypt including startups, NGOs and independent artisans. ALEXBANK provided 65 exhibitors who have been partners with the Bank in furthering the creative economy in Egypt with a large space, generating a total of EGP 117,800 collectively. In our efforts to promote financial inclusion, multiple exhibitors were also provided with ALEXBANK point of sale machines at no commission as well as ATMs, which ensured higher sales and facilitated payments with ease.
182 Sustainability Report 2019 183 ALEXBANK’s commitment to supporting Egypt’s future 9. CREATING SOCIAL IMPACT & VALUE generation starts at birth. PHOTO BY: AHMED HAYMAN AHMED BY: PHOTO
9.2 Thus far, the Bank has contributed to improving the standard of living, promoting poverty reduction and infrastructure, widening access to water, providing diversifying employment opportunities. Through mutual sustainable power sources, conserving the environment, collaboration, ALEXBANK, the Sawiris Foundation for Social Health & Wellbeing and creating economic opportunities. In addition, the Bank Development, Shorouk Misr, and Al Ahram Beverages are has been working to promote access to medical services seeking to address the needs of the Siwa labor market by especially to women, children and persons with disability providing 14 trainings pertaining to different disciplines such and providing aid during national calamities. as kilim, sewing, yogurt and jam manufacturing. Beyond THE WELLBEING OF THE COMMUNITIES WE OPERATE IN capacity training, the project aims to equip the hospital IS CRUCIAL TO PROMOTING SUSTAINABLE WELFARE FOR in Siwa with necessary equipment to detect, prevent and address sickle cell anemia through conducting medical ALL. OVER THE YEARS, ALEXBANK HAS EMBARKED ON surveys for 11,000 children and health awareness campaigns where 8,376 families attended. Moreover, the project aims NUMEROUS PARTNERSHIPS WITH GOVERNMENTAL BODIES to create a water supply station that ensures all members AND INTERNATIONAL ORGANIZATIONS TO CONTRIBUTE TO residing in Siwa have access to clean water. El Tareek is being implemented by the Siwa Community Development THE SUSTAINABLE DEVELOPMENT GOALS. IN ALIGNMENT and Environmental Protection Association. Providing a truly El Tareek (“The Roadway”) Project inclusive developmental framework that will influence the WITH INTESA SANPAOLO GROUP, THE BANK IS COMMITTED education, health and environment of a resilient community TO ENSURING EGYPT’S MARGINALIZED COMMUNITIES HAVE El Tareek is a Siwan community development project with the welcoming change, the El Tareek Project has the potential Siwa Community Development and Environmental Protection to create a better Siwa for its residents. By 2020, all 11,000 ACCESS TO HEALTHCARE SERVICES AND A SAFE ENVIRONMENT. Association, Sawiris Foundation for Social Development, children from Siwa would have been tested for sickle cell Shorouk Misr Foundation, and the Al Ahram Beverages anemia and over 550 individuals would be provided with Company. El Tareek aims to develop the community of employment opportunities, and we would have completed Siwa Oasis, while preserving the environment, improving the building of the water supply station.
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marked the start of our three-year partnership with the Magdi Yacoub Foundation, worth EGP 6,000,000, by of biomedical equipment across the hospital’s units supporting the establishment of an echocardiography and outpatient clinics. Moreover, the donation room in the Magdi Yacoub Global Heart Centre in Cairo. was able to contribute to the surgical lights for ALEXBANK’s echocardiography room is set to benefit 12,000 the Hospital’s operation rooms, upper and lower patients, out of which 4,000 are open-heart surgery cases, gastrointestinal endoscopy equipment, anesthesia From the Heart to the Heart: Support to the 2,400 of which to be performed on children. Moreover, the Extending Support to the Charitable Hospital instruments, development of a dental examination Magdi Yacoub New Heart Center (2019 – 2021) Global Heart Center is designed to welcome 80,000 of the of St Therese Church in Shoubra (2019) and treatment unit, as well as 3-dimensional ultra- most complex cases in Egypt, the Middle East, and Africa; sonography and echocardiography instruments. A key pillar of social and sustainable development revolves train healthcare professionals from the Middle East and In cooperation with the Embassy of Italy, ALEXBANK ALEXBANK is proud to report the hospital is now able to around ensuring medical resources are available and Africa; and further integrate research, innovation, and provided its support to the hospital of the St. Therese facilitate free access to medical services to as many accessible to Egypt’s diverse communities. This year, we training of young healthcare professionals. Church in Shoubra, donating EGP 300,000 to the renewal as 20,000 patients per month.
ALEXBANK’s CEO and Managing Director Dante Campioni with Sir Magdi In 2019, ALEXBANK proudly supported the St. Therese Church Hospital by Yacoub at the Aswan Heart Center, marking a mutual partnership built contributing to its equipment in surgical rooms and dentistry, recognizing its on supporting Egypt’s medical infrastructure. role and pillar of community life in Shoubra.
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9.3 Child Development, Education & Youth Employability
The Commitment Continues to “Improving EDUCATION, ENTERTAINMENT the Living Conditions of Children in Street AND A SAFE ENVIRONMENT Situations
ARE ALL CRUCIAL TO ENSURING Since 2017, ALEXBANK and the Sawiris Foundation for Social Development have partnered with two local EGYPTIAN CHILDREN DEVELOP organizations, Ana El Masry and Banati Foundation to TO BECOMING AN EMPOWERED provide 5,000 children in street situations with a holistic framework of developmental support. In 2019, ALEXBANK GENERATION CAPABLE OF renewed its commitment to the cause with the signing of a new Memorandum of Understanding between all SUPPORTING AND SUSTAINING parties to provide homeless children with access to safe ITS COMMUNITIES. accommodation, proper nutrition, health services, education, and professional training to promote their re-integration in society. Thus far, 150 children were provided with housing, Over the years, we have been committed to ensuring Egyptian 30 children have enrolled in regular schools, 2,000 girls children have access to schooling, character development have found support in this network, and 20% have been exercises and capacity trainings as they contribute to the successfully re-integrated with their families. In addition, the employability of youth. More importantly, the Bank is actively partnership supports the enhancement and capacity-building invested in supporting young Egyptian girls through diverse of four non-governmental organizations to efficiently operate means, ensuring they develop into empowered women who in this field. will contribute to the expansion of national gender equality efforts.
Shortly after reading class, the girls take a break to celebrate their teacher’s birthday at
the “In House Nurseries” in Edfu. NOUR EL DIN SHERIF PHOTO BY:
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The “In House Nurseries” project (2019 – 2021)
In October 2019, ALEXBANK signed a Memorandum of Understanding with the Sawiris Foundation for Social Development entitled “Improving the Living Conditions of Marginalized Children in Egypt” allocating EGP 50,000,000 to the cause over a five-year plan. “In-House Nurseries,” operated in partnership with Kheir Wa Baraka as a three-year project aiming to upgrade 75 nurseries in the governorates of Giza and Aswan. The project aims to provide a rounded developmental model that promotes the physical and mental wellbeing of children and parents through education and health services. The project, implemented in collaboration with our strategic partner in sustainable development, the NOUR EL DIN SHERIF PHOTO BY: Sawiris Foundation for Social Development, with Kheir Wa Baraka NGO, is set to impact 1,635 community members over the course of three years. Moreover, under the same Memorandum of Understanding, 2020 will signal the start of a project in collaboration with Wataneya for the development of Orphanages NGO entitled “Development of Orphanages for the Rehabilitation of Youth and Aftercare Services”.
Fun and laughter in a classroom in Edfu: the girls have access to an education and represent a brighter future.
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“Cotton for Life”
The “Cotton for Life” program was introduced by ALEXBANK and Filmar in 2014 to support the Egyptian Ministry of Education to educate Egyptian farmers, students and designers in organic agriculture and sustainable industry processes related to cotton production. The program aims to enhance the technical skills and employability of youth through sustainable cotton production in Egypt. Thus far, the program has served over 150,000 students from 134 technical schools situated across Kafr El Sheikh, Damietta, and Alexandria governorates. Following the successful
PHOTO BY: FARAH SHALABY PHOTO BY: inception of the project, it expanded as a national initiative labelled “The Egyptian Cotton Project” led by UNIDO Egypt. Since then the project has fulfilled the objectives of sustainable development by enhancing environmental impact and the promotion of green technologies, reducing soil contamination, promoting gender equality and empowering female workers while sustaining the production of premium cotton.
The happiness of a student gaining an opportunity to experience a childhood full of learning in a nurturing environment.
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One Dream (2018-2020)
One Dream is a community development project being implemented by the Association for the Protection of the Environment (A.P.E.), in collaboration with ALEXBANK, Starcare Egypt and Shorouk Misr Foundation to improve the living conditions of garbage collectors in Mansheyet Nasser. In 2019 alone, One Dream has transformed the lives of 9,865 individuals across all age groups by introducing six pre- nursery classrooms, ten literacy classes for adults as well as providing 3,000 individuals with medical screenings, 1,000 of which were offered medical support. In conjunction with classrooms, children between the ages of 4 and 16 are offered Funtasia Programs to develop creativity. Funtasia Egypt is a cultural center founded by the Elisa Sednaoui Foundation, that includes various topics, such as health, agriculture, and nutrition, using creative arts such as drawing, music, rhythm, acting, singing. These workshops are based on giving children/youth the safe space to exchange experiences, learn and discover their own creativity, as well as acquiring basic competencies and life skills such as “the ability to express oneself - self-confidence - the skill of creativity” with techniques from all over the world that feed the mind, heart and body, and cultivates their abilities.
The “Funtasia” program under our “One Dream” project inspires young students to embrace creativity as a powerful learning tool.
194 Sustainability Report 2019 195 As part of the “Champions Teachers Program” in 9. CREATING SOCIAL IMPACT & VALUE collaboration with Educate Me Foundation, exercises are tailored for teachers to grow their skills to benefit both their students and them.
Pioneering a New Roadmap in Education with Educate Me Foundation (2019-2021)
Education is crucial to ensuring Egypt’s future generations are provided with a framework that will enable sustainable development. Since 2016, ALEXBANK and the Educate Me Foundation for Cultural & Educational Development have been working towards improving the conditions of primary students and teachers alike in the public sector. In 2019, ALEXBANK renewed its partnership with Educate Me with the signing of a Memorandum of Understanding to introduce the “Champions Teachers Program” and “Empowering Pioneers”
PHOTO BY: NOUR EL DIN SHERIF PHOTO BY: camps for pupils in public schools. The “Champions Teachers Program” launched in 2019, aimed to improve the experiences of Egyptian teachers by enhancing teaching facilities, making resources such as technology, stationary and international training materials accessible, as well as empowering teachers through holistic training programs. To date, the program has provided support to 65 public school teachers. Over the next two years, 150 teachers will benefit annually, with the objective of enhancing the capacities of public sector educators. To extend the benefits of this program across the country, we will be implementing the program in the governorates of Cairo, Fayoum, Luxor, Sohag and Beni Suef. In July 2020, ALEXBANK will be launching the Empowering Pioneers project in Fayoum and Beni Sueif. The project aims to nurture 21st century skills and values through a project-based learning method in a safe and stimulating environment. The project is set to benefit 150 students over a two-year time period.
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Ramadan Lights 2019 Hunger Alleviation Activities ALEXBANK’s Third Annual Heroes Iftar (Iftar El-Abtal) Launched in 2018, Ramadan Lights is a series of initiatives ensure employees remain engaged with our community Food security is a key pillar of the CSR & Sustainable that take place during the month of Ramadan to promote welfare projects, the CSR and Sustainable Development Development Office’s 2018 – 2021 Strategy. As such, It has become an annual tradition for ALEXBANK, the social welfare in Egypt. In its second year, ALEXBANK was Office launched six initiatives throughout the holy month to employees took part in a food packing activity organized by Sawiris Foundation for Social Development and Samusocial keen to diversify its associated projects to achieve our address different causes. the Egyptian Food Bank. With the help of Egyptian Food Bank International Egypt to host a Ramadan Iftar for marginalized goal of engaging employees and creating shared value. To staff, employees took part in assembly line to prepare 300 children, with the purpose of supporting and empowering food boxes to be delivered to underprivileged communities them. The Iftar, named “Heroes Iftar” after the children, across the country. Moreover, ALEXBANK employees organized aims to alleviate the struggles of Egypt’s homeless children the longest Iftar table with Shobra ElKheir NGO. The hard work by providing them with a full day of fun activities and an and commitment of staff resulted in 700 meals being served opportunity to express themselves in Horreya Garden. to community members of Shobra. ALEXBANK’s 2019 Heroes Iftar welcomed 750 marginalized children from nine NGOs, in addition to approximately 250 invitees from our partners and dedicated employee volunteers with their families.
Each year, the Iftar is associated with a certain theme that is reflected in both the decorations and the activities. In 2019, the “Dream Land” themed Iftar El-Abtal was held at El Horreya Health Services Garden, aiming to realize children’s dream jobs by providing them with an opportunity to experience the different In 2019, employees were able to lend their support to the proficiencies they can aspire to have through engaging Magdi Yacoub Heart Foundation through our “How Many activities. Previous years’ themes were “Around the World”, Hearts Can You Save?” campaign. The campaign aimed to where monuments from all over the world were recreated for facilitate the ease of donating to the foundation by creating the children to visit as well as the “Heroes Carnival”, where a dedicated ALEXBANK account to the cause through which children were given access to superhero suits and activities. employees can show their support. The campaign garnered To accompany the iftar, an Ebda3 men Masr bazaar, featuring EGP 1.4 Million in donations. Moreover, to spread joy among 15 exhibitors was organized to provide attendees with a children, ALEXBANK employees visited over 60 child patients unique opportunity to shop for local products. Moreover, at the 57357 Cancer Hospital and decorated the ward to Nestlé was present to provide the children with free ice capture the Ramadan spirit. The 57357 Cancer Hospital visit cream and water highlighting their commitment to working was one of numerous employee efforts to boost morale alongside ALEXBANK on their quest to inspire children. among Egyptian children. In Sohag, an ALEXBANK employee organized an iftar for 70 children from two orphanages, as In alignment with our efforts to promote sustainable well as a unique hospital visit at the Sohag Cancer Hospital practice, the Iftar also marked the start of our partnership for children for a day of entertainment. with Go Clean, an organization working to promote efficient waste management in Egypt. Go Clean was present to not only manage the waste created from this event, but to host workshops on the concept of recycling and waste management. Go Clean’s team attended with flyers and roll- ups dispersed in the bazaar area, as well as multiple sets of Make Their Wishes Come True Campaign coded bins to direct the public on how to dispose of their waste. The team also gave children a short presentation on In partnership with Tawasol, ALEXBANK launched the the benefits of waste management, and different ways to second edition of its Make Their Wishes Come True encourage and practice it. At the end of the event, Go Clean campaign, which aims to provide employees with an was able to gather waste produced by over 100 attendees, opportunity to grant a child’s wish via email. 2019, generating money donated to advance schools. The waste employees were able to grant the wishes of 23 children, generated during the event was evaluated at 100 kilograms ALEXBANK’s CEO and Managing Director representing gifting them with toys, clothes, tablets and bicycles. of plastics, 70 kilograms of carton, and 30 kilograms of cans. ALEXBANK in celebrating the holy month of Ramadan together with our partners and some of the marginalized communities we aim to serve.
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9.4 Sustainable Finance
Digital Saving Groups Project The Bank’s Annual CSR Competition
In July, the “National Digital Savings Groups” project was IThe CSR Competition is an annual contest that led by the Central Bank of Egypt. In partnership with combines employee engagement and support for a ALEXBANK, the National Council for Women (NCW), CARE vital cause. With every year encompassing a different International, a foundation working towards implementing theme, submissions that meet critical implementation development and human aid, as well as Vodafone Egypt criteria are later distributed to employees who vote for to enable the financial inclusion of women in marginalized the winning proposal. The theme in 2019 was financial communities. It is a platform for women in rural areas inclusion, seeking the support of employees to develop to access financial and non-financial services using an a fully-fledged proposal to promote financial security e-wallet digital platform. The project provides digital in Egypt. The winning proposal later receives funding financial products through the platform such as digital and support from the CSR & Sustainable Development lending tailored to the women’s needs and enhancing Office. The 2019 proposal titled “Entrepreneurship and their economic and social welfare at a later stage of Economic Awareness for Women” won for both promoting the project. The project was piloted to 100 women in female financial inclusion as well as popularizing local five groups, with plans by the Central Bank of Egypt for organization Alashanek Ya Balady. It is currently being a national roll-out to reach up to 10,000 women over implemented by partners Deraz Charity and “Alashanek Ya a period of 24 months. This project is considered the Balady”. initial step of partial digitalization, aiming to act as an enhancement over the traditional method allowing for The initiative will provide educational and training safer transactions while paving the way for scaling up of initiatives targeting women and youth. First, it aims to the project for its nationwide roll, ultimately creating an provide women heads of households with ideas and environment that promotes sustainable financial inclusion projects in order to create revenue-generating projects. of women. Sustainable finance built on the principle that financial Second, training youth from the age of 14 to 18 on saving literacy enables the creation of a generation of financially empowered Egyptian women. and investment, in addition to training young people aged 21 and above in the selection of suitable small and medium enterprise plans.
200 Sustainability Report 2019 201 10. Walaa Mahmoud, Amr Galal, Ghada ElGawish, Menna Tarek, Mohamed Bahgat, Bashir Samir, Hend Samir, Dina Saeed, Soha Sorour, Sorour, Soha Saeed, Dina Samir, Hend Samir, Bashir Bahgat, Gammal, El Mohamed Mariam Tarek, Awad, Menna Ibrahim ElGawish, Sherif, Ingy Ghada Galal, ElYamani, Amr Nehal Mahmoud, Gamel, Walaa Milad Connections: Our Shaping Creating People The Introducing CONNECTIONS OUR SHAPING PEOPLE THE Mohamed Agag, Contact Center Team, Mai Hany, Ahmed Alaga, Heba Hossam, Gehan Hassan, Seif Negm and Fekry Shenouda. Fekry and Negm Seif Hassan, Gehan Hossam, Heba Alaga, Ahmed Hany, Mai Team, Center Contact Agag, Mohamed 203
PHOTOS BY: NOUR EL DIN SHERIF The students of Funtasia are eager to take part in 10. THE PEOPLE SHAPING OUR CONNECTIONS a creative learning activity.
MARIAM EL GAMMAL Cairo HEAD OF PEOPLE MANAGEMENT MARIAM EL GAMMAL HAS BEEN AN ACTIVE MEMBER OF OUR INSTITUTION FOR OVER A DECADE. HER DIRECT PHOTO BY: FARAH SHALABY PHOTO BY: INVOLVEMENT WITH EMPLOYEES HAS PROVIDED HER WITH UNIQUE INSIGHT INTO THE SHIFTS THAT ARE TAKING PLACE ACROSS EMPLOYEE CULTURE, SHAPING THE COMMUNITY VALUES THAT ARE INHERENTLY CENTRAL TO THE ALEXBANK’S BUSINESS MODEL WE KNOW TODAY.
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SHE CITES VOLUNTEERING AS AN ACCURATE MARKER OF WHERE SOCIETY IS TRANSITIONING, PARTICULARLY WITH REGARDS TO CELEBRATING DIVERSITY AND BRINGING PEOPLE TOGETHER FOR A GREATER CAUSE. AS PER EL GAMMAL, IN THIS DAY AND AGE, FARAH SHALABY PHOTO BY: ALEXBANK MILLENNIALS ARE FOCUSING THEIR VOLUNTEERING EFFORTS TO REPRESENT THEIR GENERATIONAL NEEDS, OFTEN FAVORING INITIATIVES THAT PROMOTE EMPOWERMENT SUCH AS AWARENESS ACTIVITIES AND ADVANCING EMPLOYMENT OPPORTUNITIES SUSTAINABLY, RATHER THAN PROVISIONAL, MOMENTARY SUPPORT. CHANGING ATTITUDES TOWARDS VOLUNTEERISM ACCURATELY OUTLINES THE EVOLUTION OF COMMUNITYSHIP AT ALEXBANK, AS WELL AS THE DIRECTION EMPLOYEE ENGAGEMENT IS HEADED TOWARDS.
The students of “Funtasia” gather to learn about how the heart pumps blood through the body, in a way that volunteerism contributes to the creation of a strong community values in institutions.
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“Nothing brings people Through ALEXBANK’s training program, a culture of friendship and comradery is established throughout our institution. together like a common goal.”
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PHOTO BY: NOUR EL DIN SHERIF PHOTO BY: AHMED ALAGA Mansoura AHMED ALAGA WAS AWARDED “BEST BRANCH MANAGER” IN 2019. HAVING WORKED AND BEEN EXPOSED TO MULTIPLE CORPORATE ENVIRONMENTS FOR OVER A DECADE, ALEXBANK WAS HIS FIRST PROPER INTRODUCTION TO WHAT HE REFERS TO AS “ACCESSIBLE CSR”. LAST YEAR, ALAGA AND HIS SON JOINED IFTAR EL ABTAL, THE BANK’S ANNUAL IFTAR HOSTING HUNDREDS OF UNDERPRIVILEGED CHILDREN FROM VARYING
PHOTO BY: NOUR EL DIN SHERIF PHOTO BY: BACKGROUNDS.
Egypt’s educators come together at the “Champions Teach- ers” program in Sohag to exchange ideas on how to build a better generation for Egypt’s future society.
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"We are transitioning into something greater than social responsibility; we are performing citizenship."
FOR ALAGA, VOLUNTEERING WITH ALEXBANK IS AN EFFECTIVE TOOL TO NOT ONLY HELP HIS COMMUNITY, BUT INSTILL VALUABLE LESSONS IN HIS SON, WHO SPENT THE DAY MAKING NEW FRIENDS. ALAGA’S SON IS NOT ONLY TRANSFORMING HIS PERCEPTION OF WORK, BUT THE VALUE OF HIS CONTRIBUTIONS TO ENABLE THE CREATION OF SHARED VALUE.
A moment of true entertainment of authentic Egyptian music and dance performance at our annual “Iftar Al-Abtal” (“Heroes Iftar”) event in Horreya Park.
212 Sustainability Report 2019 213 For educators attending the “Champions Teachers” 10. THE PEOPLE SHAPING OUR CONNECTIONS program, sharing experiences allows for strong synergies between different approaches to learning and teaching with impact.
GHADA ELGAWISH Cairo
PHOTO BY: NOUR EL DIN SHERIF PHOTO BY: GHADA ELGAWISH IS HEAD OF MULTINATIONAL DEPARTMENT AT ALEXBANK. FOR ELGAWISH, VOLUNTEERING IS A NECESSITY FOR EVERY INSTITUTION’S KPIS. IT IS A VALUABLE TOOL THROUGH WHICH TO STRENGTHEN TEAMWORK AND ESTABLISH A MORE DYNAMIC WORK RELATIONSHIP WITH COLLEAGUES. ELGAWISH’S STORY STARTS WELL BEFORE JOINING ALEXBANK, WITH HER CAREER PLACING HER AT THE EPICENTER OF CORPORATE SOCIAL RESPONSIBILITY. IN ESSENCE, VOLUNTEERING AND EMPLOYEE ENGAGEMENT HAVE ALWAYS BEEN A COMPONENT OF HER CAREER TRAJECTORY, OUTSPANNING NUMEROUS INSTITUTIONS.
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"Volunteering has always been a part of my career path because I believe the Bank’s volunteering activities cultivate a culture of teamwork."
THIS YEAR IN RAMADAN, ELGAWISH WORKED ALONGSIDE HER TEAM TO JOIN OUR RAMADAN LIGHTS INITIATIVE “MAKE THEIR WISHES COME TRUE”, IN WHICH HER DEPARTMENT WAS ABLE TO GRANT A CHILD’S WISH OF OWNING A PLAY STATION. THE SENSE OF ASSURANCE THAT THE GIFT WAS NEEDED, THAT AN ENTIRE TEAM COULD JOIN AND THAT THERE WOULD BE A DIRECT LINK TO THE CHILD WERE JUST SOME OF THE REASONS ELGAWISH WILL BE
WORKING ALONGSIDE HER TEAM TO CREATE SHARED VALUE. Young girls playing on a bouncing castle at the festive and activity-filled ALEXBANK “Iftar Al-Abtal” (“Heroes Iftar”).
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INGY SHERIF Cairo INGY SHERIF IS AN INTERNAL COMMUNICATION OFFICER WORKING TO ENSURE ALEXBANK EMPLOYEES RECEIVE CORRECT MESSAGING. SHERIF’S DRIVE TOWARDS VOLUNTEERISM STARTED IN SCHOOL, WHERE SHE TOOK PART IN WHAT SHE DESCRIBES AS A HEARTWARMING ORPHANAGE VISIT. THE SCHOOL VISIT MARKED A PATH TOWARDS VOLUNTEERISM THAT WOULD CONTINUE WELL INTO HER CAREER, CONTRIBUTING TO THE BANK’S ANNUAL IFTAR EL ABTAL, WHERE UNDERPRIVILEGED CHILDREN ENJOY A FULL DAY OF ENTERTAINMENT AT HORREYA PARK A FEW MONTHS INTO WORKING AT ALEXBANK.
At the “Dreamland” themed annual “Iftar Al-Abtal”, where children were given the change to live out their greatest dreams.
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IFTAR EL ABTAL IS A FOND MEMORY OF SHERIF’S, WHERE SHE JOYFULLY RECALLS THE MAGNITUDE OF THE EVENT AND THE IMPACT IT WOULD HAVE ON SPREADING SMILES
ACROSS THE FACES OF CHILDREN. MOST NOTABLY, SHERIF ELGENDY MOHAMED PHOTO BY: HIGHLIGHTS “THERE WAS A FEELING THAT CAME WITH THE EVENT THAT MADE ME FEEL RAMADAN WOULD NOT HAVE BEEN WHAT IT WAS IF NOT FOR THAT DAY”.
Supporting remote local businesses often leads to great economic growth similar to that of ALEXBANK through its”Ebda3 men Masr” initiative to support and sustain handicrafts in Siwa and beyond.
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“I felt like I was part of something big.”
Children at the “I The Egyptian” school sup- ported by ALEXBANK are given the tools they need to engage with the wider world. PHOTO BY: FARAH SHALABY PHOTO BY:
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SOHA SOROUR Cairo SOHA SOROUR IS A SENIOR PURCHASING OFFICER AT ALEXBANK WHO HAS ACTIVELY CONTRIBUTED TO THE FIELD OF DEVELOPMENT AND CHILD WELFARE. AS A WORKING MOTHER, SOROUR BELIEVES IN ALIGNING WITH INSTITUTIONS THAT ENDORSE THE SAME VALUES SHE WORKS TOWARDS INSTILLING IN HER CHILDREN. VOLUNTEERISM IS NOT JUST AN AFTER-WORK ACTIVITY FOR SOROUR, IT IS A NECESSARY TEACHING MOMENT FOR YOUNG ADULTS GROWING UP.
A glimpse of the entertaining activities made available for the kids at the annual “Iftar Al-Abtal” (“Heroes Iftar”).
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AT LAST YEAR’S IFTAR EL ABTAL, AN ANNUAL EVENT THAT AIMS TO BRING EGYPT’S MARGINALIZED CHILDREN TOGETHER TO CELEBRATE THE JOYS OF CHILDHOOD, SOROUR’S SON ACCOMPANIED HER TO THE EVENT, WHERE SHE PROUDLY RECALLS THE PRIDE AND FARAH SHALABY PHOTO BY: SENSE OF ACCOMPLISHMENT, HE FELT IN DISTRIBUTING TOYS TO THE CHILDREN HE MET THERE IN PERSON. SOROUR HAS SINCE TAKEN PART IN MORE CSR ACTIVITIES THAN WE CAN COUNT AND Bright blue, and beautifully hand LOOKS FORWARD TO PLAYING AN ACTIVE ROLE IN COMMUNITY painted artwork depicting the garden center at the “Banati” (“My DEVELOPMENT. Girls”) Foundation.
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At Edfu, a young girl carefully ties her balloon at the only nursery within her community. “I took my son with me to ‘Iftar El Abtal’ and he was able to share the experience with so many other children personally handing out the toys we bought to the children .”
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FEKRY SHENOUDA Cairo INSPIRED BY HIS MOTHER’S PHILANTHROPIC WORK, HEAD OF CUSTODY AND SERVICES OFFICE FEKRY SHENOUDA HAS BEEN CONTRIBUTING TO COMMUNITY DEVELOPMENT PROJECTS FOR THE GREATER PART OF HIS LIFE. SHENOUDA RECALLS HOW HELPING OTHERS WAS THE NORM IN HIS FAMILY, SPENDING MANY CHILDHOOD DAYS VISITING SHELTERS.
An array of colorful paintings produced by
PHOTO BY: FARAH SHALABY PHOTO BY: the young girls of the “Banati” (“My Girls”) Foundation to foster their creative skills.
230 Sustainability Report 2019 231 ALEXBANK10. THE PEOPLE VOLUNTEERS SHAPING OUR CONNECTIONS
"What drives me to volunteer is the sense of purpose that comes with doing something good or making someone smile desoit their difficult situation."
AS SUCH, HE ENCOURAGED HIS SON AND DAUGHTER TO BE EQUALLY INVOLVED IN DIVERSE COMMUNITY DEVELOPMENT PROJECTS THAT RANGE FROM SUPPORTING THE ELDERLY TO VISITING ORPHANAGES. MOTIVATED BY DRAWING A SMILE ON OTHERS, SHENOUDA CONTRIBUTED TO THE BANK’S 2019 IFTAR EL ABTAL AND CHILD DEVELOPMENT PROJECTS LABELLING ALEXBANK AS A PIONEER IN VOLUNTEERISM, CREATING A MARK ON EMPLOYEE IDENTITY. SHENOUDA IS CURRENTLY INVESTING HIS TIME AND EFFORTS TO EMPOWER THE COMMUNITIES LIVING IN THE FIFTEENTH OF MAY DISTRICT AND WILL BE SEEKING THE GUIDANCE AND SUPPORT OF HIS COMMUNITY TO ENSURE EGYPTIANS HAVE Children making their way to the face painting booth ACCESS TO SAFE HOUSING. to get into any character they would like to be for the day at our annual “Iftar Al-Abtal”.
232 233 10. THE PEOPLE SHAPING OUR CONNECTIONS The spirit of volunteerism was felt across our 2019 Iftar El Abtal (‘Heroes Iftar) thanks to the support of our volunteers.
GHADA EL GAMAL Cairo INTERNAL COMMUNICATION OFFICER GHADA EL GAMAL PLAYS A CRUCIAL ROLE IN KEEPING EMPLOYEES INFORMED BY COMMUNICATING INTERNAL BANK DEVELOPMENTS. EL GAMAL’S FIRST VOLUNTEERING EXPERIENCE WAS AT THE BANK’S ANNUAL IFTAR EL ABTAL, WHERE SHE WOULD BE PROVIDING COVERAGE FOR THE EVENT TO ALL BANK EMPLOYEES.
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DESPITE BEING HESITANT AT FIRST, EL GAMAL QUICKLY LEARNED THAT CONTRIBUTING TO THE HAPPINESS AND WELLBEING OF OTHERS WOULD BE A RECURRING THEME THAT WOULD FOLLOW THE NEW EXPERIENCES THAT WOULD COME ALONGSIDE BEING NEWLY RECRUITED IN 2019, WHERE CREATING SHARED VALUE WOULD BE INHERENT TO THE ROLE SHE WOULD PLAY IN COMMUNICATING KEY MESSAGING TO STAFF. VOLUNTEERING HAS PHOTO BY: FARAH SHALABY PHOTO BY: BECOME AN ESSENTIAL PART OF HER GROWTH, CITING ITS ROLE IN HELPING HER EXPAND HER KNOWLEDGE AND EXPERIENCES SURROUNDING DIFFERENT ISSUES, LATER TAKING PART IN THE BANK’S BLOOD DONATION CAMPAIGNS. EL GAMAL IS LARGELY INTERESTED IN AWARENESS CREATION, PARTICULARLY WITH REGARDS TO HUMAN BEHAVIOR AND ITS ROLE ON COMMUNAL GOOD AND LOOKS FORWARD TO CONTRIBUTING TO ITS ACCESSIBILITY ACROSS ALL BRANCHES. The grounds of the “Banati” (“My Girls”) Foundation are home to eclectic art filled walls to provide a sense of home to the hundreds of girls living there.
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“Volunteering helped me personally.”
Fun and laughter in a classroom in Edfu: the girls have
access to an education and represent a brighter future. NOUR EL DIN SHERIF PHOTO BY:
238 Sustainability Report 2019 239 Hearts and smiles for one of the many children attending 10. THE PEOPLE SHAPING OUR CONNECTIONS our annual “Iftar Al-Abtal” (“Heroes Iftar”).
NEHAL ELYAMANY Cairo NEHAL ELYAMANY IS AN AUTHOR, LOANS OPERATIONS OFFICER AND HAS BEEN A DEDICATED CSR AMBASSADOR SINCE 2018.LIKENING HER EMPLOYEE EXPERIENCE AT ALEXBANK AS “BEING PART OF A BIG SCHOOL”, AWAD HAS LENT HER SUPPORT TO THE BANK’S MOTHER’S DAY INITIATIVES, 57357 CHILDREN CANCER HOSPITAL VISITS AS WELL AS IFTAR EL ABTAL, WHERE SHE INVITED HER FAMILY TO ATTEND. AWAD IS PARTICULARLY INVESTED IN THE CHARACTER DEVELOPMENT OF EGYPTIAN CHILDREN, EMPHASIZING THEIR CRUCIAL ROLE IN DEVELOPING EGYPT’S FUTURE SOCIETY.
240 Sustainability Report 2019 241 10. THE PEOPLE SHAPING OUR CONNECTIONS ALEXBANK, alongside the “Banati” (“My Girls”) Foundation believe in investing in children, recognizing their role in building Egypt’s future.
BEYOND CHILD DEVELOPMENT, AWAD AIMS TO SHED LIGHT ON ALEXBANK’S PARTNERSHIPS AMONG HER FRIEND CIRCLE, WITH THE HOPES OF NOT ONLY SHEDDING LIGHT ON THE BANK’S SOCIAL ENDEAVORS, BUT TO OTHERS TO LEND THEIR SUPPORT. PHOTO BY: FARAH SHALABY PHOTO BY:
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Making financial education fun: “Hady Bady” is ALEXBANK’s boardgame creating financial literacy among school “I want ALEXBANK children and transforming young Egyptians into financially to invest even responsible citizens more in children - they are the future and will build our society.”
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TAMER OKDA, IBRAHIM AWAD, MENNA TAREK, WALAA MAHMOUD AND HEBA HOSSAM
The Contact Center Team ALEXBANK’S CONTACT CENTER IS A SUPPORT HUB CLIENT TURN TO FOR GUIDANCE. HEBA HOSSAM, MENNA TAREK, AMR GALAL, SAMAR KHALIL AND IBRAHIM AWAD, TAMER EL OKDA PLAY A CRUCIAL ROLE IN ASSISTING ALL BANK COMMUNITY MEMBERS RESOLVE ISSUES WHEN THEY ARISE.
PHOTO BY: NOUR EL DIN SHERIF PHOTO BY: THEIR DEDICATION TO HELPING OTHERS WOULD BARE A NEW MEANING OVER THE COURSE OF THE YEAR, AND WHAT WOULD START AS A NORMAL WORKDAY WOULD TRANSPIRE INTO A UNIQUE STORY OF FRIENDSHIP. WHEN THE 57357 ALEXBANK’s Contact Center team’s friendship was built on a foundation of helping others (from left to right: Tamer HOSPITAL VISIT ANNOUNCEMENT MADE ITS WAY El Okda, Heba Hossam, Menna Tarek, Walaa Mahmoud Amr Galal and Ibrahim Awad). TO THEIR EMAILS, IT WAS QUICKLY DECIDED THAT IT WOULD ONLY MAKE SENSE AS A COLLECTIVE EXPERIENCE.
246 Sustainability Report 2019 247 10. THE PEOPLE SHAPING OUR CONNECTIONS "In 2019, we decided to volunteer together and enjoyed learning about the initiatives being arranged by the Bank. After going to the first event, we agreed we would make a tradition out of it."
AFTER SPENDING THE DAY DRAWING SMILES ON THE FACES OF CHILDREN AT THE HOSPITAL, A NEWFOUND TRADITION TO WORK TOGETHER TO HELP OTHERS WAS BORN AND A RIPPLE EFFECT WOULD GO INTO MOTION. THE GROUP WOULD LATER CONTRIBUTE TO THE SUCCESS OF THE SHUBRA IFTAR, IFTAR EL ABTAL AND THE CHRISTMAS EDITION OF THE 57357 HOSPITAL VISIT ENCOURAGING OTHER MEMBERS OF THEIR TEAM TO TAKE PART IN THE INITIATIVES BEING INSTIGATED. ALEXBANK’S CONTACT CENTER TEAM HAS PROVEN ITS COMMITMENT TO THE HIGHEST LEVEL OF SUPPORT, WITH ASSISTANCE THAT CAN BE FELT ACROSS THE SOCIAL LANDSCAPE.
Students at the In House Nurseries classroom NOUR EL DIN SHERIF PHOTO BY: pose with the balloons they were gifted as part of a birthday celebration.
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GEHAN HASSAN Cairo GEHAN HASSAN IS A LOANS OPERATIONS OFFICER. ALONGSIDE HER COLLEAGUES, HASSAN VOLUNTEERED FOR THE FIRST TIME THROUGH ALEXBANK AT THE BANK’S ANNUAL IFTAR EL ABTAL EVENT BACK IN 2019, AIMING TO EMPOWER UNDERPRIVILEGED CHILDREN IN EGYPT. HASSAN RECALLS THE FEELING SHE HAD WITNESSING
A group of our heroes posing happily for a picture in between a full day of games at our annual “Iftar Al-Abtal” (“Heroes Iftar”).
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THE CHILDREN SMILE AND TAKE PART IN THE FESTIVITIES, HIGHLIGHTING THE ENJOYMENT SHE FELT BEING PART OF SOMETHING UNIQUE. HASSAN LOOKS FORWARD TO PARTICIPATING IN OTHER BANK LED INITIATIVES OVER THE YEAR FARAH SHALABY PHOTO BY: AND IS HOPING TO EXTEND HER CARE AND SUPPORT TO EGYPTIANS RESIDING IN ELDERLY HOMES.
To ignite creativity in children, the “Funtasia” project incorporates fun with learning to create an engaged and socially empowered generation of Egyptians.
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“Participating in the ‘Iftar El Abtal’ event was my first volunteering experience at ALEXBANK, the highlight of which was seeing the children’s joy.”
For the “Sinaweya” edition of ALEXBANK’s Ramadan Bag, young women from Sinai showcased their skill and cultural heritage as expressed in traditional embroidery.
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MAI HANY Cairo PURCHASING TEAM LEADER MAI HANY BELIEVES IN THE POWER OF INNOVATION. ALONGSIDE BEING A DEDICATED CSR AMBASSADOR BY CONTRIBUTING
PHOTO BY: NOUR EL DIN SHERIF PHOTO BY: TO INITIATIVES SUCH AS “MAKE THEIR WISHES COME TRUE” AND THE BANK’S ANNUAL IFTAR EL ABTAL, HANY SUBMITS HER IDEAS TO TACKLE A VARIETY OF ISSUES THAT IMPACT EGYPTIANS TO THE BANK’S CSR COMPETITION ANNUALLY. THE CSR COMPETITION PROVIDES EMPLOYEES WITH A PLATFORM THROUGH WHICH TO SHARE THEIR IDEAS TO TACKLE OR A NATIONAL ISSUE ALONGSIDE THE SUPPORT OF THE CSR & SUSTAINABLE DEVELOPMENT OFFICE. ALEXBANK fosters and supports projects such as the “Champions Teachers” program where teamwork is the foundation for success.
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HANY DEDICATED HER CSR COMPETITION PROPOSAL TO POPULARIZING REMOTE NGOS WORKING IN SILENCE TO GENERATE LOUD IMPACT, SHEDDING LIGHT ON NGOS SUPPORTING INDIVIDUALS LIVING WITH VISUAL IMPAIRMENTS IN TANTA. AS A RESULT, HANY WON AN AWARD FOR HER EFFORTS TO PROMOTE LOCAL INITIATIVES WORKING TO SERVE THEIR UNIQUE COMMUNITIES. HANY ENJOYS WORKING IN CLOSE COLLABORATION WITH THE CSR & SUSTAINABLE DEVELOPMENT OFFICE, LOOKING FORWARD TO WITNESSING THE EXPANSION OF BANK INITIATIVES TO REGIONAL BRANCHES OVER THE COMING In keeping with ALEXBANK efforts to celebrate Egyptian cul- YEARS. ture, the annual “Iftar Al-Abtal” (“Heroes Iftar”) welcomed guests with traditional Ramadan beverages.
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“My long standing and close contact with the CSR & Sustainable Office is influenced by my inherent sense of duty towards society.”
A student paints a clay piggy bank after learning the value of saving through ALEXBANK’s first financial literacy game “Hady Bady”.
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MOHAMED BAHGAT Cairo MOHAMED BAHGAT IS A CORPORATE TEAM LEADER WHO ENJOYS FRIENDLY COMPETITION. IT IS FOR THAT REASON THE BANK’S “MAKE THEIR WISHES COME TRUE” INITIATIVE SPARKED HIS INTEREST. BAHGAT RECALLS WAITING PATIENTLY EVERY MORNING TO RECEIVE THE EMAIL THAT IS SENT TO ALL EMPLOYEES A NEW OPPORTUNITY TO GRANT A CHILD’S WISH EVERY DAY DURING THE HOLY MONTH OF RAMADAN WITH. HIS SPECIFIC FOCUS, HOWEVER, WAS ON BUYING A BICYCLE FOR A TAWASOL STUDENT.
During the month of Ramadan, ALEXBANK employ- ees were able to grant the wishes of children by gifting them with the toys they wished for. PHOTO BY: FARAH SHALABY PHOTO BY:
262 Sustainability Report 2019 263 264 PERSISTENT TO SUPPORTOTHERS. EMPLOYEE AN BE WOULD WHAT OF START THE BE ONLY IT WOULD AGO, YEARS SEVEN OVER ORPHANAGE AN AT PLACE TOOK EXPERIENCE VOLUNTEERING FIRST BAHGAT’S WITH WINNING. OF THAT VOLUNTEERING OF ACT THE LIKEN TO EMPLOYEES HAS CAMPAIGN INSPIRED TRUE” COME WISHES THEIR “MAKE THE WISH. THE “WON” FINALLY HE SAYS BAHGAT ATTEMPTS, FIVE AFTER did." finally I Ramadan of days five buy abicycle! Sometimeduringthelastto wanted I only: thing one and thing one on focused was I But amazing. was It first. wish) a grant (to email an send would who see to competing were "Colleagues CONNECTIONS OUR SHAPING PEOPLE THE 10. Sustainability Report 2019Sustainability wishes and contributions made are celebrated. are made contributions and new wishes children’s the about informed are colleagues which in initiative, Ramadan True” Come Wishes Their “Make our for announcement An 265
PHOTO BY: NOUR EL DIN 10. THE PEOPLE SHAPING OUR CONNECTIONS
MILAD GAMEL Cairo MILAD GAMEL IS A DIGITALIZED OPERATIONS OFFICER WHOSE PASSION FOR COMMUNITY DEVELOPMENT EXTENDS FAR BEYOND THE WALLS OF ALEXBANK. INFLUENCED BY THE NEIGHBORHOOD WHERE HE RESIDES, GAMEL RECALLS WITNESSING FIRSTHAND THE CHALLENGES EGYPTIAN FACE DAILY. THE FORMER CALL CENTER EMPLOYEE TURNED CORPORATE HIGHLIGHTS THE ROLE OF HIS COLLEAGUES IN ENCOURAGING HIM TO TAKE PART IN THE BANK’S SOCIAL RESPONSIBILITY INITIATIVES, ESTABLISHING A TRADITION CENTERED AROUND VOLUNTEERISM SPANNING THE START OF HIS ALEXBANK THREE At our annual “Iftar Al-Abtal” (“Heroes Iftar”), ALEXBANK’s third annual Ramadan iftar for children in street situations YEARS AGO. in partnership with the Sawiris Foundation for Social Devel- opment, marginalized children from across Egypt gather for a full day of fun activities.
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"We as ALEXBANK have a great responsibility and role in being socially responsible and painting smiles on more people’s faces."
HE HAS SINCE TAKEN PART IN THE BANK’S HUNGER ALLEVIATION CAMPAIGNS, CHILD DEVELOPMENT INITIATIVES AND MOST NOTABLY HEALTH AND WELLNESS PROJECTS AT THE 57357 CHILDREN’S CANCER HOSPITAL. HIS MOST MEMORABLE VISIT YET, GAMEL DISTINCTLY REMEMBERS THE HAPPINESS HE FELT MAKING CHILDREN SMILE. THE SENSE OF PRIDE AND FULFILMENT WAS NEVER LOST ON GAMEL, WHO WOULD LATER ORGANIZE A SECOND VISIT TO THE HOSPITAL WITH HIS COMMUNITY CHURCH. DEVELOPING INFORMAL COMMUNITIES IS GAMEL’S PRIORITY, AND ALONGSIDE THE CSR & SUSTAINABLE DEVELOPMENT OFFICE - IS EAGER TO WORK TOWARDS THIS.
A young girl enjoys the rock-climbing area in the activities section of our annual “Iftar Al-Abtal” (“Heroes Iftar”) organized in cooperation with “Samusocial International Egypte”.
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HEND SAMIR Cairo HEND SAMIR IS HEAD OF PEOPLE MANAGEMENT UNIT AT ALEXBANK. HER DECADE LONG CAREER IN THE BANK HAS EXPOSED HER TO THE DIVERSE CANDIDATES THAT WOULD LATER LEAVE THEIR MARK ON THIS INSTITUTION. SAMIR CITES VOLUNTEERISM AS A MAJOR THEME THAT IS OFTEN EXPLORED WELL BEFORE THE HIRING STAGE, WHERE YOUNG APPLICANTS IN PARTICULAR HIGHLIGHT THEIR PREVIOUS VOLUNTEERING OPPORTUNITIES. FOR MANY ALEXBANK EMPLOYEES, THE FOUNDATION FOR VOLUNTEERISM HAS ALREADY BEEN ESTABLISHED WELL BEFORE THEIR CAREER TRAJECTORY, ALIGNING WITH VALUES THAT CAPTURE THE PRACTICES THE BANK PROMOTES.
A child participating in the festivities as part of our annual “Iftar Al-Abtal” (“Heroes Iftar”) for the benefit of Egypt’s marginalized children.
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"People are not just financially driven, they want to see and experience all the facettes of the organization."
SAMIR ALSO CREDITS VOLUNTEERING ACTIVITIES FOR BENEFITING EMPLOYEES BY BOTH ENABLING THEM TO EXPLORE ALL ASPECTS OF AN ORGANIZATION, AS WELL AS DIVERSIFY THEIR PERSPECTIVE OF LIFE. AS A MEMBER OF ALEXBANK’S HUMAN RESOURCES DEPARTMENT, SAMIR WILL CONTINUE TO ENDORSE THE BANK’S VOLUNTEERING INITIATIVES, AS THEY CONTINUE TO ADVANCE THE DEVELOPMENT OF EMPLOYEES WELL BEYOND THE WORKPLACE.
ALEXBANK employees attend the ‘Iftar El Abtal’ (‘Heroe’s Iftar’) celebrations to highlight their commitment to empowering Egypt’s marginalized children.
272 Sustainability Report 2019 273 At the “Funtasia” program, children play a variety of games recognizing the role of fun in developing a generation of fulfilled Egyptians. 10. THE PEOPLE SHAPING OUR CONNECTIONS
MOHAMED AGAG Sohag MOHAMED AGAG’S EIGHT YEARS AT ALEXBANK AS HEAD OF CUSTOMER SERVICE HAVE BEEN NOTHING SHORT OF INTRIGUING. FOLLOWING A SIX-YEAR CORPORATE PATH, AND A PAST AS A CHILD RIGHTS ACTIVIST IN UNIVERSITY, AGAG HAS ESTABLISHED A FOUNDATION IN HIS DAILY MANTRA TO SUPPORT CHILDREN WITH A VARIETY OF AILMENTS. IT CAME
PHOTO BY: FARAH SHALABY PHOTO BY: AS NO SURPRISE TO THE CSR & SUSTAINABLE DEVELOPMENT OFFICE WHEN HE TOOK INITIATIVE AND REACHED OUT FOR SUPPORT IN ORDER TO HOST AN IFTAR FOR CHILDREN WITH CANCER IN SOHAG.
274 Sustainability Report 2019 275 276 EVENT. ANNUAL AN IFTAR RAMADAN THE MAKING TO FORWARD LOOK TO CONTINUES HE AS COMMUNITY, HIS IN INITIATIVES INTRODUCE TO OFFICE DEVELOPMENT SUSTAINABLE & CSR THE ALONGSIDE WORKING TO COMMITTED IS AGAG REASONS MANY THE OF ONE IS TREATMENT, OF MONTHS FROM HAD THAN MORE FAR LIFT, SPIRIT CHILDREN’S THE WITNESSING FAMILIES. THEIR WITH FOOD GOOD OVER RAMADAN OF MONTH HOLY THE CELEBRATE TO FESTIVITIES IN PART TAKE AND ANOTHER ONE WITH GROUNDS THE ROAM TO ABLE WERE CHILDREN OF HUNDREDS WEEKS, SHORT TWO IN to seeksupport." opportunities new with people young providing microloans, its with leading is "ALEXBANK CONNECTIONS OUR SHAPING PEOPLE THE 10. Sustainability Report 2019Sustainability Students at a school in Tanta painting clay ‘banks’ as part of aninteractive exercisepart topromote financialliteracy. as ‘banks’ clay painting Tanta in school a at Students 277
PHOTO BY: NOUR EL DIN 10. THE PEOPLE SHAPING OUR CONNECTIONS
DINA SAEED Cairo DINA SAEED HAS BEEN LEADING ALEXBANK’S HUMAN RESOURCES SERVICE DESK SINCE 2016, ENSURING EMPLOYEES ARE EQUIPPED WITH THE TOOLS TO THRIVE IN A GROWING INSTITUTION. THE “MAKE THEIR WISHES” CAMPAIGN, AN INITIATIVE THROUGH WHICH EMPLOYEES ARE SENT AN EMAIL WITH A CHILD’S WISH FOR THEM TO GRANT HOLDS A DEAR MEMORY FOR SAEED, WHO VALUES THE PERSONALIZED NATURE OF PROVIDING CHILDREN WITH A GIFT THEY TRULY WANT. IN FACT, SHE SHARES STORIES ABOUT THE INITIATIVES BEING UNDERTAKEN AT ALEXBANK WITH HER FAMILY, IN WHICH THEY SHARE THEIR SUPPORT.
The students at “Tawasol” eagerly open presents gifted to them by ALEXBANK employees.
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SAEED LOOKS FORWARD TO WITNESSING THE BANK SUPPORT EDUCATIONAL PROJECTS MORE, PARTICULARLY IN AREAS WHERE ACCESS TO SCHOOLS CAN BE A CHALLENGE. WHILE SAEED’S RESPONSIBILITIES COMPRISE PROVIDING EMPLOYEES WITH SUPPORT, SHE HAS EXTENDED HER HELPING HAND BEYOND THE WALLS OF THE BANK TO CREATE VALUE THAT IS SHARED.
Young girls at the “Tawasol” School learning to sew and embroider accessories as a capacity building and empowerment tool.
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“My family is always excited to see ALEXBANK’s giveaways. From the small handmade artisan gifts to the annual Ramadan bag. Everything the Bank shares with us is seen and appreciated by our families.”
A woman embroiders a tale of rural Egypt on a custom lap- top sleeve for our “Reefiya” (“Rural”) corporate giveaway, inspired by the natural beauty of Egypt’s countryside.
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BASHIR SAMIR Tanta
BASHIR SAMIR IS A HUMAN RESOURCES SPECIALIST WHOSE WORK TAKES HIM FROM TANTA TO CAIRO EVERY MONTH. THE TRAVELING RECRUITER HAD BEEN WORKING FOR ALEXBANK A LITTLE UNDER SIX MONTHS WHEN HE FIRST JOINED THE EARTH DAY DOCUMENTARY SCREENING OF “A PLASTIC OCEAN”. A UNIQUE EXPERIENCE TO SAMIR, ENVIRONMENTAL AWARENESS ACTIVITIES WOULD BE THE FIRST OF MANY INITIATIVES HE WOULD TAKE PART IN TO NOT ONLY CONNECT WITH COMMUNITY MEMBERS, BUT ALSO HELP OTHERS.
In celebration of Earth Day, ALEXBANK hosted its employees to a documentary screening of critically acclaimed documentary “A Plastic Ocean” at Startup Haus in Downton Cairo.
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SAMIR HAS SINCE BEEN TO A VARIETY OF ALEXBANK’S INITIATIVES, SPANNING ENVIRONMENTAL WELFARE AND CHILD DEVELOPMENT. “If we are able to reach people SAMIR LOOKS FORWARD TO TAKING PART IN MORE ACTIVITIES everywhere, we will encourage people IN TANTA, WHERE HE PRIMARILY RESIDES, AND IS EAGER TO WITNESS THE EXPANSION OF CSR ACTIVITIES ACROSS EGYPT’S to participate.” GOVERNORATES WHERE MORE BRANCH NETWORK PARTNERS CAN ALSO TAKE PART.
The journey to “Tawzun” (“Balance”) farm in the Siwa Oasis offers tranquil backdrops to an enterprise built on
embracing balance. ELGENDY MOHAMED PHOTO BY:
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SEIF NEGM Cairo SEIF NEGM IS A CREDIT ANALYST WHOSE FIRST EXPERIENCE WITH THE CSR & SUSTAINABLE DEVELOPMENT OFFICE TEAM AT ALEXBANK WAS AT THE “A PLASTIC OCEAN” EARTH DAY DOCUMENTARY SCREENING. WHILE HESITANT TO JOIN AT FIRST, NEGM HAS BECOME ONE OF OUR MOST COMMITTED VOLUNTEERS. IN 2019 ALONE, HE HAS TAKEN PART IN INITIATIVES THAT ENCOMPASS ENVIRONMENTAL WELFARE, CHILD DEVELOPMENT AND HUNGER ALLEVIATION. THIS YEAR, NEGM WAS ABLE TO SCRATCH AN OVERDUE ITEM OFF HIS BUCKET LIST: JOIN A FOOD PACKING INITIATIVE IN PHOTO BY: MOHAMED EL GENDY MOHAMED PHOTO BY: EGYPT’S FOOD BANK.
ALEXBANK’s diverse agricultural projects recognize the role of environmental welfare in promoting a stable and secure economy.
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"What motivated me the most was that it (the Food Bank visit) was in Ramadan, when our support really makes a difference."
NEGM SPENT HIS DAY LEARNING MORE ABOUT FOOD INSECURITY IN EGYPT WHILE HAND PACKING BOXES FOR HUNGRY FAMILIES ACROSS CAIRO. HIS INVOLVEMENT IN OUR RAMADAN LIGHTS SERIES WOULD MARK HIS FIRST-TIME TAKING PART IN A VOLUNTEERING FARAH SHALABY PHOTO BY: ACTIVITY, THAT HE WOULD LATER ENCOURAGE HIS FRIENDS TO JOIN. SINCE THEN, NEGM AND HIS TEAMMATES HAVE COLLABORATED TO PURCHASE A BICYCLE FOR A STUDENT AT TAWASOL’S COMMUNITY SCHOOL, WITH VOLUNTEERING INTRODUCING AN EXCITING NEW ELEMENT TO TEAMWORK.
For the young girls of “Banati” (“My Girls”) Foundation, art remains a grounding source of comfort through creative expression.
290 Sustainability Report 2019 291 ALEXBANK is committed to investing in Egypt’s agriculture sector, recognizing its role in realizing economic growth.
11. FINANCIAL INCLUSION & PURPOSEFUL LENDING51 PHOTO BY: AHMED HAYMAN AHMED PHOTO BY:
51 292 GRI 201-1, GRI 201-4, GRI 203-1, GRI 203-2 Sustainability Report 2019 293 11. FINANCIAL INCLUSION & PURPOSEFUL LENDING
FINANCIAL INCLUSION IS A SHARED GOAL BY BOTH THE CENTRAL BANK OF EGYPT AND INTESA SANPAOLO GROUP, RECOGNIZED FOR ITS CONTRIBUTION TO A STRUCTURED DEVELOPMENTAL FRAMEWORK OF SUPPORT. IT IS A CRUCIAL DEVELOPMENTAL COMPONENT THAT HAS TAKEN CENTER STAGE WITHIN ALEXBANK’S BUSINESS OPERATIONS. IN ORDER TO ACHIEVE INCLUSION THAT CAN BE SUSTAINED, THE BANK HAS DEPLOYED DIVERSE INITIATIVES TO PROVIDE EGYPTIAN COMMUNITIES WITH SUPPORT THROUGH TAILORED MICROLOANS LITERACY AND INCLUSION.
ALEXBANK’s financial inclusion framework places great emphasis on initiatives for financial literacy, recognizing its role in establishing a sustainable inclusion strategy.
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Introducing the “Ebda3 men Masr” microloan: Egypt’s first microloan for artisans 11.1 that includes a variety of tailor-made non-financial services. Our Microloan Initiatives
OVERALL, MORE THAN EGP 1 BILLION WERE DISBURSED IN 2019 TO SUPPORT MICROFINANCE ACTIVITIES, OUT OF WHICH ALMOST EGP 1 MILLION WERE DIRECTED INITIATIVES IN PARTNERSHIP WITH THE CSR & SUSTAINABLE DEVELOPMENT OFFICE UNDER A NEW PRODUCT SEGMENTATION ENTITLED MICROFINANCE IN COOPERATION WITH ENTITIES/NGOS THAT WAS CREATED IN LATE 2019.
This segmentation’s purpose is to better offer value added NGOs play a strong role beyond just advising on the products to our customers. Over the coming years and in beneficiary’s segment demographic including helping to line with the Bank’s strategy to expand its lending directed ensure the sourcing of quality clients from the target to microfinance activities in partnership with NGOs, we are segments. Products under this category include a capacity aiming to witness an increase of amounts disbursed under building component that is designed to fit the target industry this category. of the product. NGOs are responsible for the delivery of This new category of microfinance products is in line with this capacity building component which always includes a ALEXBANK’s core belief in multi-stakeholder synergies, financial literacy pillar tailored to match the beneficiaries. allowing the Bank to offer competitive lending products In 2019 a total of 20 loans were disbursed under this cluster to the underbanked. The contractual agreement includes across two main initiatives as shown below with plans to entities such as NGOs, local top tiers, multinational further expand the scope of our initiatives falling under companies, or governmental bodies. this cluster, consolidating the financial inclusion of further segments of the society.
The “Ebda3 men Masr” Microloan Tamkeen Microloan Initiative
This year, ALEXBANK launched the Ebda3 men Masr In 2018, ALEXBANK launched Tamkeen to address the needs microloan, Egypt’s first microloan for craftsmen and of rural communities, tailored for agricultural, commercial women. Developed jointly by the CSR & Sustainable and manufacturing activities through training and microloan Development Office, the Mass Retail & Products schemes. The success of Tamkeen can be credited to Department, and the Micro Finance Department, combining microloans with mandatory trainings to ensure the microloan provides artisans with financial and individuals are equipped to generate a sustainable source of technical support including: a microloan, a micro income. The initiative ended in April 2019, with the product savings account, debit card, legal advisory services, contributing to the disbursement of 33 microloans in Asyut, 2017 new 2018 new 2019 new business trainings and direct sales opportunities. 15 and provided capacity building workshops for 488 individuals. booking in EGP booking in EGP booking in EGP loans were booked in 2019. Furthermore, 72% of Tamkeen loans contributed to the Total Microfinance (Individuals) 702,882,600 850,099,100 877,434,100 growth of cattle farming. Total Microfinance (Enterprises) 11,975,213 83,853,500 162,260,000
Year 2018 Year 2019 Total Microfinance including microfinance with NGOs 714,857,813 933,952,600 1,039,694,100
EGP EGP Micro finance in coordination with NGOs/ entities (Individuals) 0 1,191,000 593,000 Tamkeen 1,191,000 220,000 Micro finance in coordination with NGOs/ entities (Companies) 0 0 260,000 Ebda3 men Masr 0 633,000
296 Sustainability Report 2019 297 11. FINANCIAL INCLUSION & PURPOSEFUL LENDING The journey to Dakhla Oasis, where "Ebda3 men Masr" artisans seek inspiration to produce unique handmade products 11.2 Responsible Finance: The Variable Interest Rate Program
IN LIGHT OF THE INTRODUCTION OF THE EGYPTIAN ECONOMIC REFORM PROGRAM 2016, ALEXBANK INTRODUCED LENDING WITH A VARIABLE PRICING INDEX. Ihab Moneer Head of Microfinance Department In light of the introduction of the Egyptian Economic Reform Program 2016, ALEXBANK introduced lending with a variable pricing index. This pricing method allows customers to obtain their loans with a variable index that can be decreased in relation to the economic development witnessed in the country. Moreover, as a direct result of improved Central Bank of Egypt rates, our customers benefitted from the three waves of decreasing interest rate in 2019. The production with the variable pricing reached approximately 80% from our retail lending during 2019.
“Our microfinance lending mechanism mirrors the digital transformation taking place across the Bank through the introduction of new
electronic features pertaining to loan HAYMAN AHMED PHOTO BY: disbursements and settlement through multiple digital channels.”
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11.3 In an effort to promote the steady growth of digitalization in Egypt, ALEXBANK launched the Meeza ("Benefit”) card to facilitate easier payments without the commitment of Meeza Cards opening a bank account.
IN ALIGNMENT WITH THE EGYPTIAN GOVERNMENT AND THE CENTRAL BANK OF EGYPT’S VISION TO PROMOTE A CASHLESS SOCIETY THROUGH ELECTRONIC PAYMENTS, ALEXBANK LAUNCHED “MEEZA,” THE FIRST NATIONAL PRE-PAID CARD IN OCTOBER 2019.
To accompany the launch, an educational video was circulated to all employees to provide them with an overview on the features of the card. The card issuance aims to support the Egypt Vision 2030 goal of limiting the circulation of cash outside the scope of the formal economy. The issuance of the card was exempted of administrative fees until December 31st in 2019 and is open to all Egyptians regardless of their client status. Applicants benefit from a simplified process that guarantees the immediate acquisition of the card without an obligation to open a bank account.
THE MEEZA CARD IS PREPAID BY ALEXBANK AND SIMPLIFIES MAKING PAYMENTS WITHIN IN EGYPT
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11.4 Financial Literacy & Awareness
“Hady Bady” is ALEXBANK’s first financial literacy game, encouraging Egypt’s future generations to learn crucial financial principles such as saving, spending and donating.
ALEXBANK’s “Hady Bady” Financial “HADY BADY” Impact Through Awareness Creation Arab Financial Inclusion Week Microfinance Literacy Game for Children Roadshow (April) HAS PROVEN TO In 2019, ALEXBANK took part in numerous national and “Hady Bady” is a financial literacy game tailored for BE A VITAL TOOL international financial inclusion events to promote To celebrate Arab Financial Inclusion Week, ALEXBANK Egyptian children with the purpose of enshrining the financial literacy and inclusion among the unbanked, conducted a microfinance roadshow in 12 areas across six principles of prioritizing financial needs in balance THROUGH WHICH TO particularly Egyptian youth and women. In alignment governorates Fayoum, Luxor, El Minya, Beni Suef, Sohag and with supporting others with less fortunate financial PROMOTE FINANCIAL with the Central Bank of Egypt’s mandates, the Bank Aswan. To promote female financial inclusion, the roadshow circumstances. The game educates children about deployed its wide network of branches in three main was also conducted in Manial Shiha where 46 women opened how they can spend for belongings they desire; save LITERACY IN YOUTH, financial inclusion events. The events sought to savings accounts. The microfinance roadshows resulted to attain items they love, and donate money to help promote ALEXBANK’s tailored products and services in the opening of 415 accounts for women and 800 men. people in need. ALEXBANK implemented two national roll PARTICULARLY through its social media platforms, ensuring the Moreover, to promote financial literacy among individuals of outs of the game reaching 15,479 students in 37 schools AMONG GIRLS, WHO message is conveyed to a wider population segment: all ages, a booklet titled “Masroufy” was provided to children across 12 governorates. The first took place in March with the purpose of providing a guide to the fundamentals of during Arab Financial Inclusion Week and the second in REPRESENTED 49% money to 1,200 children. October, in celebration of World Savings Day. 1. APRIL: OF THE STUDENTS. Arab Financial Inclusion Day 2. AUGUST: FINTB Customers Micro Individual Youth Payroll Youth International Day 3. OCTOBER: 2019 Financial Inclusion International Week and International Saving Day 2018 ALEXBANK’s branch activities included direct opportunities to open any type of account with 0 40% 20% 80% 60% no administrative fees and no minimum balance. 100% Complementing the branch activities, external activations on the ground were organized in April Figure 19, above, reveals the 116% growth of the overall youth across universities alongside a microfinance segment among new customers to the Bank. The increase roadshow. These efforts contributed to the opening from 18% in 2018, to 39% in 2019 records the largest share of 37,000 total accounts, in addition to almost 19,000 against other categories of Financial Inclusion, New to Bank cards issued and over 25,000 Ma7fazty registrations. customers.
302 Sustainability Report 2019 303 11. FINANCIAL INCLUSION & PURPOSEFUL LENDING With “Hady Bady”, over 15,000 students in 37 schools across 12 governorates were able to learn the fundamentals of finance. 11.5 Egyptian University Students & The Banking Sector
As such, the Bank visited ten universities across different ON THE OCCASION OF THE ARAB governorates to propose our YOUTH proposition with an DAY FOR FINANCIAL INCLUSION end-to-end customer journey that includes wallet activation, card-less ATM options, and depositing money in e-wallet ON APRIL 27TH, ALEXBANK TOOK using Fawry. The figure below outlines the results of the three events outlining the number of accounts that were opened, PART IN A WIDE RANGE OF cards issued and wallet registration. FINANCIAL INCLUSION ACTIVITIES TO PROMOTE THE INCLUSION OF EGYPTIAN UNIVERSITY STUDENTS. Male Male
2019 FI Events April (8-24) August (1-15) October (15-31)
Retail Branches Universities Retail Branches Retail Branches Alaa Lasheen 11,821 12,220 4,155 8,550 Head of Financial Inclusion Solutions Office
37% 40% 34% 35%
63% 60% 66% 55% ACCOUNTS OPENED , , , , 4 871 7 029 3 015 3 943 “Financial literacy plays a pivotal role in 34% 42% 32% 32% 66% 58% 88% 68% CARDS ISSUED we have tailored awareness programs 10,600 1,100 4,812 9,228 accessible to youth, women and micro, 22% 31% 22% 24% small and medium enterprises and will 78% 69% 78% 76% heavily rely on E-learning platforms in 2020.” MA7FAZTY REGISTRATION
304 Sustainability Report 2019 305 11. FINANCIAL INCLUSION & PURPOSEFUL LENDING
11.6 Digital Financial Awareness
IN ORDER TO ESTABLISH A SUCCESSFUL FINANCIAL INCLUSION STRATEGY, WE HAVE BEEN WORKING TOWARDS THE DEVELOPMENT AND ENHANCEMENT OF OUR DIGITAL FINANCIAL SERVICES.
This year, ALEXBANK hosted its first digital financial services interactive workshop and discussion by engaging managers from different functions such as Microfinance, Products, Small Business, Financial Inclusion, Mobile Payment, CSR & Sustainable Devel- opment with the support of the Training Team and the Arab Women Enterprise Fund (AWEF).
The “Digital Saving Groups” is an ALEXBANK initiative that provides groups of women with the financial knowledge and enables them with digital tools to collectively economize and manage their households and independent ventures through saving.
306 Sustainability Report 2019 307 308 12. OUR IMPACT OUR COMMUNICATING Sustainability Report 2019Sustainability A young girl is completely taken by the the by taken completely is girl young A comic she's reading at the “In House House “In the at reading she's comic Nurseries” classroominEdfu. 309
PHOTO BY: NOUR EL DIN PHOTO BY: NOUR EL DIN SHERIF 12. COMMUNICATING OUR IMPACT
TO PROMOTE A CULTURE OF 1. Annual Sustainability Report TRANSPARENCY, WE DEPLOYED MULTIPLE Our annual Sustainability Report is a publication that aims to shed light on the developments being undertaken by the Bank to create shared value. Our annual Sustainability Report is a MEASURES TO ESTABLISH AN ONGOING collaborative effort, where all Bank functions contribute to providing our community with information that is as accurate as it is reflective of the dynamic changes being introduced. COMMUNICATION CHANNEL WITH OUR All previous editions of the report are made available on ALEXBANK’s official website, in both PARENT COMPANY INTESA SANPAOLO English and Arabic. GROUP, AS WELL AS OUR PARTNERS AND OTHER STAKEHOLDERS. AS SUCH, THE BANK MAINTAINS THE FOLLOWING: 2. ISO 26000 50 Since 2017, the Bank has been contributing to the ISO 26000 international corporate social responsibility standard. The independent third-party assessment that is carried out at Group level, requires reporting on the processes being implemented to ensure our Code of Ethics is embedded in all our operations, whether core or non-core. This assessment is a requirement for ALEXBANK, as a subsidiary of Intesa Sanpaolo Group.
3. Sustainability News & Topics In 2019, ALEXBANK published the first edition of Sustainability News & Topics. This bi-annual publication aims to shed light on those initiatives being undertaken by the CSR & Sustainable PHOTO BY: FARAH SHALABY PHOTO BY: Development Office that promote social and environmental welfare. Moreover, its bi- annual nature enables us to establish a more frequent communication channel with our stakeholders. All editions of this publication are available on our website in both English and Arabic.
4. Press Releases In order to communicate and promote significant developments, we regularly collaborate with media outlets to ensure the general public is informed of any changes that occur. Press releases can be found in the media section of our official website.
5. The Bank’s Annual Report The Bank reports all its activities to the Central Bank of Egypt, transparently outlining its efforts to align with national mandates and regulations. The report comprises the contributions of all Bank functions, who submit their most recent updates over the year. The A student at “In House Nurseries” engag- CSR & Sustainable Development Office contributes to the Board of Directors’ Annual Report to es in a story with her peers. clearly outline the status of its projects, while remaining aligned with Intesa Sanpaolo Group’s (ISP) Business Plan.
50 310 Sustainability Report 2019 GRI 102-12 311 The staircase leading to the “Al-Qalam” (“The Pen”) Foundation in one of the oldest existing buildings in the historic center of Old Cairo.
13. MEMBERSHIPS52 PHOTO BY: FARAH SHALABY PHOTO BY:
52 312 GRI 102-13 Sustainability Report 2019 313 13. MEMBERSHIPS
The Federation of The United Nations Global Equator United Nations Environment Programme Egyptian Banks Compact (UNGC)53 Principles – Finance Initiative (UNEP – FI)
Since 2013, ALEXBANK has been a We became a signatory of the Since 2012, the Equator Principles In 2019, we became the first bank in the Middle East Group which has been a member since 2006, ALEXBANK member of the Social Development UN Global Compact in 2014. We have become a pillar of our to endorse the UNEP – FI’s Principles for Responsible became a founding signatory of the Principles, highlighting Steering Committee of the Social have since considered its ten environmental governance guidelines, Banking. The six principles: Alignment, Impact, Clients & its commitment to responsible banking and securing Development Committee, which universal principles to promote providing us at ALEXBANK with a Customers, Stakeholders, Governance & Target Setting, and Egypt’s environmental future for generations to come. In encourages banks to donate 2% of environmental welfare, human comprehensive framework to reduce Transparency & Accountability provide financial institutions September 2019, we became a member of the United Nations their net profit to develop informal rights and anti-corruption; a social and environmental risks with a holistic framework of support ensuring the Bank Finance Initiative, which allows the Bank to lead in the field areas in Egypt, aligning with our crucial framework component of associated with activities undertaken advances sustainably without compromising business of sustainable finance alongside an alliance of 130 banks efforts to create shared value. its governance strategy. by financial institutions. operations. Moreover, in alignment with Intesa Sanpaolo worldwide.
The coloured grounds of the “I The Egyptian” school for at risk children in 6th of October City. PHOTO BY: FARAH SHALABY PHOTO BY:
53 314 GRI 102-11, GRI 205-1 Sustainability Report 2019 315 ANNEX 1: AUDITED STATEMENT
OF FINANCIAL ELGENDY MOHAMED PHOTO BY: POSITION54
As part of our "El Tareek" project, young Siwan women learn to embrace traditional weaving equipment to represent their heritage through handwoven carpets
54 316 GRI 102-45 Sustainability Report 2019 317 ANNEX 1: AUDITED STATEMENT OF FINANCIAL POSITION 53
Bank of Alexandria Bank of Alexandria (Egyptian Joint Stock Company) (Egyptian Joint Stock Company) Financial position statement Income statement For the year ended 31 December 2019 For the year ended 31 December 2019
Note Note For the year end For the year end 31 December 2019 31 December 2018 31 December 2019 31 December 2018 EGP 000 EGP 000 EGP 000 EGP 000 Assets Cash and balances at Central Bank of Egypt (16) 5 975 427 3 915 184 Interest and similar income (6) 13 210 599 11 960 183 Due from banks (17) 31 118 632 29 238 822 Interest and similar expense (6) (7 199 149) (6 387 252) Treasury bills and other governmental notes (18) 18 047 092 19 070 088 Net interest income 6 011 450 5 572 931 Loans and advances to customers (19) 41 801 709 38 239 121 Fee and commission income (7) 926 720 871 537 Financial assets classified at fair value through profit and loss (20) 6 832 4 384 Financial investments Fee and commission expense (7) ( 307 114) ( 191 833) Financial assets classified at fair value through other comprehensive Net fee and commission income 619 606 679 704 (21) 4 948 356 2 503 079 income Net income 6 631 056 6 252 635 Financial assets classified at fair value through profit and loss (21) 49 851 76 819 Investments in associates (22) 76 888 60 373 Dividends' income (8) 48 868 36 711 Intangible assets (23) 152 001 193 523 Net income from financial assets classified at fair value through Other assets (24) 1 367 045 1 247 477 profit and loss (9) 985 ( 1 413) Fixed assets (25) 633 766 583 753 Change in financial assets classified at fair value through profit and Total assets 104 177 599 95 132 623 loss ( 40 895) -
Net trading income (10) 88 120 66 444 Liabilities and shareholders' equity Liabilities (Losses) from financial investments (21) ( 325) ( 6 531) Due to banks (26) 456 927 419 215 Bank's share in undistributed profit of associated companies 3 757 5 734 Customers' deposits (27) 87 451 824 78 782 023 Impairment recovery / (charge) on credit losses (13,19) 115 788 ( 19 840) Other loans (28) 907 781 778 510 Administrative expenses (11) (2 634 181) (2 270 997) Other liabilities (29) 1 671 569 2 553 171 Other provisions (30) 275 609 492 163 Other operating revenues / (expenses) (12) 230 408 ( 81 765) Current income tax liabilities 587 140 524 744 Net profit before income tax 4 443 581 3 980 978 Deferred tax liabilities (31) 172 596 136 869 Income tax expense (14) (1 104 206) ( 955 493) Retirement benefits obligations (32) 1 064 549 941 443 Total Liabilities 92 587 995 84 628 138 Net profit for the year 3 339 375 3 025 485 Shareholders' equity Earnings per share (EGP/share) - Basic (15) 7.51 6.83 Share capital (33) 800 000 800 000 Reserves (34) 1 834 414 1 846 982 Retained earnings (34) 8 955 190 7 857 503 The accompanying notes from page (7) to page (80) are an integral part of these interim financial statements and are to be read therewith. Total Shareholders' equity 11 589 604 10 504 485 Total liabilities and Shareholders' equity 104 177 599 95 132 623
Auditors, Report"attached" Dante Campioni Mohamed Raef CEO and Managing Director Chief Financial Officer The accompanying notes from page (7) to page (80) are an integral part of these interim financial statements and are to be read therewith.
Dante Campioni Mohamed Raef CEO and Managing Director Chief Financial Officer
-2-
318 -1- Sustainability Report 2019 319 ANNEX 2: GRI CONTENT INDEX55
In celebration of World Savings Day, ALEXBANK launched a second national roll out of its first financial literacy game “Hady Bady” across dozens of classrooms in Egypt.
55 320 GRI 102-55 Sustainability Report 2019 321 ANNEX 2: GRI CONTENT INDEX 102-11 P. 314 For the SDG Mapping Service, GRI Services reviewed that the GRI disclosures included in the content index are 102-12 P. 160, 311 appropriately mapped against the SDGs. The service was performed on the English version of the report and 102-13 P. 312 reflected by our team on the Arabic version of the report. Strategy 102-14 P. 6, 7 102-15 P. 41 Ethics and Integrity 102-16 P. 32 SDG 16: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels Reason for P. 87, 146 Page Number and/or Direct Answers SDG Linkages Omission 102-17 P. 28, 87 SDG 16: Promote peaceful and inclusive societies for sustainable development, GRI 101: Foundation 2016 provide access to justice for all and build effective, accountable and inclusive GRI 102: General Disclosures 2016 institutions at all levels Organizational Profile Governance 102-1 P. 9, 28 102-18 P. 89 102-2 P. 28 102-19 P. 89 102-3 ALEXBANK's headquarters are located in 102-20 P. 89 49 Kasr El Nile, Cairo, Egypt. 102-4 ALEXBANK operates in Egypt, including the 102-21 P. 14, 93 SDG 16: Promote peaceful and inclusive 102-5 majority of its governorates. societies for sustainable development, 102-6 provide access to justice for all and build Joint Stock Company effective, accountable and inclusive P. 28, 67 institutions at all levels 102-7 P. 55 102-22 P. 89, 94 SDG 5: Achieve gender equality and empower all women and girls 102-8 ALEXBANK does not employ part-timers; SDG 8: Promote sustained, inclusive and all employees are employed on a full- sustainable economic growth, full and SDG 16: Promote peaceful and inclusive time basis. productive employment and decent work societies for sustainable development, for all provide access to justice for all and build P. 140 effective, accountable and inclusive SDG 10: Reduce inequality within and among institutions at all levels countries 102-23 P. 90 SDG 16: Promote peaceful and inclusive 102-9 P. 67, 120 societies for sustainable development, provide access to justice for all and build 102-10 Any changes made to the organization, effective, accountable and inclusive whether regarding its products, services, institutions at all levels employees, clients, structures, etc., are communicated to the whole organization 102-24 P. 90 SDG 5: Achieve gender equality and and management makes sure that empower all women and girls guidelines are followed to guarantee that any changes or developments made will SDG 16: Promote peaceful and inclusive cause no harm to the organization and societies for sustainable development, abides by all social and environmental provide access to justice for all and build rules. effective, accountable and inclusive institutions at all levels P. 67, 120
322 Sustainability Report 2019 323 102-25 ALEXBANK has a clear policy for conflict SDG 16: Promote peaceful and inclusive Stakeholder Engagement of interest in which they abide by at all societies for sustainable development, levels. provide access to justice for all and build 102-40 P. 14 effective, accountable and inclusive P. 89 102-41 There are no collective bargaining SDG 8: Promote sustained, inclusive and institutions at all levels agreements in ALEXBANK, however, there sustainable economic growth, full and 102-26 P. 90 is room for communicating grievances or productive employment and decent work any type of feedback due to ALEXBANK's for all 102-27 P. 90 open door policy and systematic cycle of feedback between managers and 102-28 P. 92 employees. A staff union is in place. 102-29 P. 90 SDG 16: Promote peaceful and inclusive 102-42 ALEXBANK uses a diversified approach in societies for sustainable development, identifying and selecting stakeholders, provide access to justice for all and build as including all types of stakeholders is effective, accountable and inclusive crucial to devising efficient strategies institutions at all levels and goals. 102-30 P. 102, 98 P. 14 102-31 P. 102, 98 102-43 P. 14 102-32 P. 95 102-44 P. 14 102-33 The Board of Directors and management Reporting Practice have always had an open-door policy for communication of any risk caused to 102-45 P. 63, 316 ALEXBANK or by ALEXBANK. 102-46 P. 8 P. 119 102-47 P. 12 102-34 P. 106 102-48 There are no restatements of 102-35 P. 95 information. 102-36 P. 95 102-49 There have been no changes in reporting since the 2018 sustainability report. 102-37 P. 14 SDG 16: Promote peaceful and inclusive societies for sustainable development, 102-50 One-year reporting period. provide access to justice for all and build effective, accountable and inclusive 102-51 ALEXBANK’s most recent report was institutions at all levels published in 2018. 102-38 ALEXBANK’s employees’ annual 102-52 2019 compensation median represents 16% 102-53 Laila Hosny from the highest paid individual’s annual Head of CSR & Sustainable Development compensation. Office 102-39 ALEXBANK’s employees’ annual Email: [email protected] compensation percentage increase or median represents 30% from the annual Amina Khalil compensation percentage increase of Head of Social Performance & Reporting the highest paid individual. Unit Email: [email protected] 102-54 This report has been prepared in accordance with the GRI Standards: Core option. P. 10 102-55 GRI P. 320 content index 102-56 External There is no external assurance for this assurance report.
324 Sustainability Report 2019 325 Material Topics 202-2 ALEXBANK's employees are mainly from SDG 8: Promote sustained, inclusive and the local community, except for the sustainable economic growth, full and GRI 200 Economic Standard Series CEO and CRO. This is due to structural productive employment and decent work guidelines given by Intesa Sanpaolo, in for all GRI 201: Economic Performance 2016 addition to localization. GRI 103: Management Approach 2016 GRI 203: Indirect Economic Impacts 2016 103-1 P. 67 GRI 103: Management Approach 2016 103-2 Expanding economic impact is a top 103-1 Indirect economic impacts are the priority for ALEXBANK. Activities and additional consequences of the direct programs are in place to move as many impact of financial transactions and the individuals as possible from the informal flow of money between ALEXBANK and its sector to the formal sector. stakeholders. 103-3 P. 8, 42, 96, 97 103-2 ALEXBANK has one of the biggest social 201-1 P. 55, 66, 292 SDG 8: Promote sustained, inclusive and investment portfolios in the market sustainable economic growth, full and and ensures financial inclusion and productive employment and decent work purposeful lending in all core activities for all and business products. SDG 9: Build resilient infrastructure, promote 103-3 In 2019, more than EGP 1 billion was inclusive and sustainable industrialization disbursed to support microfinance and foster innovation activities. 201-2 Operations are not affected by climate SDG 13: Take urgent action to combat 203-1 P. 156, 292 SDG 5: Achieve gender equality and change. climate change and its impacts* empower all women and girls * Acknowledging that the United Nations SDG 9: Build resilient infrastructure, promote Framework Convention on Climate Change is inclusive and sustainable industrialization the primary international, intergovernmental and foster innovation forum for negotiating the global response to SDG 11: Make cities and human settlements climate change. inclusive, safe, resilient and sustainable 201-3 P. 140 203-2 ALEXBANK is committed to ensuring SDG 1: End poverty in all its forms 201-4 P. 292 that the areas it operates in are everywhere considered. Each location is assessed SDG 3: Ensure healthy lives and promote GRI 202: Market Presence 2016 for its accessibility to clientele and in well-being for all at all ages accordance to the building and zoning GRI 103: Management Approach 2016 codes of the Egyptian Government. SDG 8: Promote sustained, inclusive and sustainable economic growth, full and 103-1 Market presence refers to the Bank’s P. 156, 292 market presence in relation to economic productive employment and decent work development in the local areas in which for all it operates, for example, local hiring. GRI 204: Procurement Practices 2016 103-2 ALEXBANK has an open-door policy and a GRI 103: Management Approach 2016 transparent system. 103-1 This is the process in which the bank 103-3 Each department filters and prioritizes selects, and manages doing business its issues then they are directly with its suppliers/vendors. communicated to top management. 103-2 ALEXBANK takes great care to vet its 202-1 ALEXBANK’s entry level salary across all SDG 1: End poverty in all its forms suppliers and empower local firms functions is EGP 3,500, which is almost 3 everywhere whenever possible. times Egypt's minimum wage amounting SDG 5: Achieve gender equality and to EGP 1,200. P. 67, 68, 96, 97, 132, 133 empower all women and girls SDG 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
326 Sustainability Report 2019 327 103-3 Supplier tenders are evaluated on a 103-2 ALEXBANK does not engage in any series of financial and technical criteria activities that could affect the and we ensure sourcing from local operations of any of its stakeholders. suppliers to ensure greater impact on surrounding communities. ALEXBANK’s 103-3 P. 87 indirect impact on the stability of its 206-1 There are no legal actions pending. SDG 16: Promote peaceful and inclusive operations and jobs of its suppliers societies for sustainable development, can be measured by the EGP 1.4 billion provide access to justice for all and build allocated for local procurement in 2019. effective, accountable and inclusive P. 67, 68, 96, 97, 132, 133 institutions at all levels 204-1 All products and services are a SDG 8: Promote sustained, inclusive and GRI 300 Environmental Standards Series 100 percent purchased locally and sustainable economic growth, full and ALEXBANK's significant area of operation productive employment and decent work GRI 302: Energy 2016 is divided into the headquarters and the for all GRI 103: Management Approach 2016 branches. 103-1 P. 127, 128 P. 67, 120 103-2 ALEXBANK is very environmentally GRI 205: Anti Corruption 2016 conscious and has started digitizing most GRI 103: Management Approach 2016 services and products, including paper records. 103-1 P. 107 103-3 P. 127, 128 103-2 ALEXBANK has bylaws incorporating all aspects that fall under the umbrella of 302-1 P. 127 SDG 7: Ensure access to affordable, reliable, corruption. Any incidents that take place sustainable and modern energy for all are addressed in the newsletter. SDG 8: Promote sustained, inclusive and sustainable economic growth, full and 103-3 P. 36, 37, 89, 90 productive employment and decent work 205-1 P. 314, 155 SDG 16: Promote peaceful and inclusive for all Operations societies for sustainable development, SDG 12: Ensure sustainable consumption and assessed for provide access to justice for all and build production patterns risks related to effective, accountable and inclusive SDG 13: Take urgent action to combat corruption institutions at all levels climate change and its impacts* 205-2 P. 148, 149 SDG 16: Promote peaceful and inclusive *Acknowledging that the United Nations Communication societies for sustainable development, Framework Convention on Climate Change is and training provide access to justice for all and build the primary international, intergovernmental about anti- effective, accountable and inclusive forum for negotiating the global response to corruption institutions at all levels climate change. policies and 302-2 P. 127 SDG 7: Ensure access to affordable, reliable, procedures sustainable and modern energy for all 205-3 There was no record of any incidents of SDG 16: Promote peaceful and inclusive SDG 8: Promote sustained, inclusive and Confirmed corruption at the Bank. societies for sustainable development, sustainable economic growth, full and incidents of provide access to justice for all and build productive employment and decent work corruption and effective, accountable and inclusive for all actions taken institutions at all levels SDG 12: Ensure sustainable consumption and GRI 206: Anti Competitive Behavior 2016 production patterns GRI 103: Management Approach 2016 SDG 13: Take urgent action to combat climate change and its impacts* 103-1 Anti-Competitive behavior involves practices that prevent or reduce *Acknowledging that the United Nations competition in the market. Framework Convention on Climate Change is the primary international, intergovernmental P.87 forum for negotiating the global response to climate change.
328 Sustainability Report 2019 329 302-3 P. 127, 133 SDG 7: Ensure access to affordable, reliable, GRI 305: Emissions 2016 sustainable and modern energy for all GRI 103: Management Approach 2016 SDG 8: Promote sustained, inclusive and sustainable economic growth, full and 103-1 Intesa Sanpaolo’s social and productive employment and decent work environmental commitment, marked by for all participation in a series of international initiatives – including the Global Compact SDG 12: Ensure sustainable consumption and and the Sustainable Development production patterns Goals of the United Nations, the United SDG 13: Take urgent action to combat Nations Environment Programme Finance climate change and its impacts* Initiative (UNEP-FI) and the Equator Principles. The goals for 2022 include *Acknowledging that the United Nations a reduction in absolute emissions Framework Convention on Climate Change is connected with energy consumption the primary international, intergovernmental (direct and indirect) of 37 percent forum for negotiating the global response to compared with 2012 (a 31 percent climate change. reduction was recorded in the period 302-4 P. 127, 133 SDG 7: Ensure access to affordable, reliable, 2012-2016). The Intesa Sanpaolo Climate sustainable and modern energy for all Change Action Plan is in accordance with the international climate change SDG 8: Promote sustained, inclusive and agreements. sustainable economic growth, full and productive employment and decent work 103-2 In line with Intesa Sanpaolo, ALEXBANK for all has been increasing its efforts in the direction of reducing its carbon footprint. SDG 12: Ensure sustainable consumption and production patterns 103-3 P. 130, 139 SDG 13: Take urgent action to combat 305-1 In line with Intesa Sanpaolo, we have SDG 3: Ensure healthy lives and promote climate change and its impacts* been increasing our efforts in the well-being for all at all ages direction of reducing its carbon footprint. *Acknowledging that the United Nations SDG 12: Ensure sustainable consumption and Framework Convention on Climate Change is As part of the National Energy Efficiency production patterns the primary international, intergovernmental Improvement Project (a joint initiative by SDG 13: Take urgent action to combat forum for negotiating the global response to United Nations Development Programme climate change and its impacts* climate change. (UNDP) and the Ministry of Electricity and 302-5 P. 127, 133 SDG 7: Ensure access to affordable, reliable, Renewable Energy), ALEXBANK succeeded *Acknowledging that the United Nations sustainable and modern energy for all in transforming seven of its premises Framework Convention on Climate Change is from conventional lighting to efficient the primary international, intergovernmental SDG 12: Ensure sustainable consumption and lighting systems. forum for negotiating the global response to production patterns climate change In 2019, no new cars have been SDG 8: Promote sustained, inclusive and purchased and gasoline consumption SDG 14: Conserve and sustainably use the sustainable economic growth, full and declined 71% to reach 20,187 liters and oceans, seas and marine resources for productive employment and decent work diesel fell 63% to reach 77,932 liters. sustainable development for all SDG 15: Protect, restore and promote SDG 13: Take urgent action to combat sustainable use of terrestrial ecosystems, climate change and its impacts* sustainably manage forests, combat *Acknowledging that the United Nations desertification, and halt and reverse land Framework Convention on Climate Change is degradation and halt biodiversity loss the primary international, intergovernmental forum for negotiating the global response to climate change
330 Sustainability Report 2019 331 305-2 We have started working on a Carbon This SDG 3: Ensure healthy lives and promote 305-4 Given the nature of ALEXBANK’s activities This SDG 13: Take urgent action to combat Footprint Report in 2019, and it will be information well-being for all at all ages and sector, calculating GHG emissions information is climate change and its impacts* published in 2020. is currently intensity are not highly material to the not applicable SDG 12: Ensure sustainable consumption and * Acknowledging that the United Nations unavailable; nature of our operations. to ALEXBANK’s The Carbon Footprint report will enable production patterns Framework Convention on Climate Change is however, the activities. us to calculate Scope 2 GHG emissions the primary international, intergovernmental data is being SDG 13: Take urgent action to combat of our operations (branches and head forum for negotiating the global response to aggregated. climate change and its impacts* offices), and will act as a basis for the climate change. development of a comprehensive impact * Acknowledging that the United Nations SDG 14: Conserve and sustainably use the assessment and improvement plans. Framework Convention on Climate Change is oceans, seas and marine resources for the primary international, intergovernmental sustainable development forum for negotiating the global response to SDG 15: Protect, restore and promote climate change. sustainable use of terrestrial ecosystems, SDG 14: Conserve and sustainably use the sustainably manage forests, combat oceans, seas and marine resources for desertification, and halt and reverse land sustainable development degradation and halt biodiversity loss SDG 15: Protect, restore and promote 305-5 P. 131 SDG 13: Take urgent action to combat sustainable use of terrestrial ecosystems, climate change and its impacts* sustainably manage forests, combat * Acknowledging that the United Nations desertification, and halt and reverse land Framework Convention on Climate Change is degradation and halt biodiversity loss the primary international, intergovernmental forum for negotiating the global response to 305-3 The Carbon Footprint report that will This SDG 3: Ensure healthy lives and promote climate change. be published in 2020 will enable us to information well-being for all at all ages calculate indirect (Scope 3) emissions, is currently SDG 14: Conserve and sustainably use the SDG 12: Ensure sustainable consumption and and to develop enhancement plans unavailable; oceans, seas and marine resources for production patterns accordingly. however, the sustainable development data is being SDG 13: Take urgent action to combat SDG 15: Protect, restore and promote aggregated. climate change and its impacts* sustainable use of terrestrial ecosystems, * Acknowledging that the United Nations sustainably manage forests, combat Framework Convention on Climate Change is desertification, and halt and reverse land the primary international, intergovernmental degradation and halt biodiversity loss forum for negotiating the global response to 305-6 As previously mentioned, the carbon This SDG 3: Ensure healthy lives and promote climate change. footprint report that will monitor and information is well-being for all at all ages calculate the GHG emissions of the not applicable SDG 14: Conserve and sustainably use the SDG 12: Ensure sustainable consumption and Bank’s operations for both branches to ALEXBANK’s oceans, seas and marine resources for production patterns sustainable development and head offices leading to impact activities. assessment and improvements actions SDG 15: Protect, restore and promote will be published in 2020. However, given sustainable use of terrestrial ecosystems, ALEXBANK’s activities, it being a financial sustainably manage forests, combat institution, ozone-depleting substances desertification, and halt and reverse land (ODS) are not highly material to the degradation and halt biodiversity loss nature of our operations. 305-7 As previously mentioned, the carbon This SDG 3: Ensure healthy lives and promote footprint report that will monitor and information is well-being for all at all ages calculate the GHG emissions of the not applicable SDG 12: Ensure sustainable consumption and Bank’s operations for both branches to ALEXBANK’s production patterns and head offices leading to impact activities. assessment and improvements actions SDG 14: Conserve and sustainably use the will be published in 2020. However, given oceans, seas and marine resources for ALEXBANK’s activities, it being a financial sustainable development institution, calculating nitrogen oxides SDG 15: Protect, restore and promote (NOX), sulfur oxides (SOX), and other sustainable use of terrestrial ecosystems, significant air emissions are not highly sustainably manage forests, combat material to the nature of our operations. desertification, and halt and reverse land degradation and halt biodiversity loss
332 Sustainability Report 2019 333 GRI 306: Effluents and Waste 2016 306-5 As previously mentioned, the carbon This SDG 6: Ensure availability and sustainable footprint report that will monitor and information is management of water and sanitation for all GRI 103: Management Approach 2016 calculate the GHG emissions of the not applicable SDG 14: Conserve and sustainably use the Bank’s operations for both branches to ALEXBANK’s 103-1 P. 127 oceans, seas and marine resources for and head offices leading to impact activities. sustainable development 103-2 ALEXBANK is committed to managing assessment and improvements actions all the hazardous and non-hazardous will be published in 2020. However, given SDG 15: Protect, restore and promote waste it produces. There is a department ALEXBANK’s activities, being a financial sustainable use of terrestrial ecosystems, responsible for facilities management institution, there are no water bodies sustainably manage forests, combat that is responsible for everything related affected by water discharges and/or desertification, and halt and reverse land to effluents and waste management. runoff as a result of our operations. degradation and halt biodiversity loss 103-3 P. 127, 132, 133, 200, 201 GRI 307: Environmental Compliance 2016 306-1 We keep track of all water discharge by SDG 3: Ensure healthy lives and promote GRI 103: Management Approach 2016 quality in all governorates. well-being for all at all ages 103-1 P. 10, 64, 65, 66, 67 SDG 6: Ensure availability and sustainable management of water and sanitation for all 103-2 We ensure meticulous screening and evaluation of the organizations who work SDG 12: Ensure sustainable consumption and with us through our commitment to the production patterns Equator Principles. SDG 14: Conserve and sustainably use the 103-3 P. 127 oceans, seas and marine resources for sustainable development 307-1 No non-compliance with environmental SDG 16: Promote peaceful and inclusive laws and regulations. societies for sustainable development, 306-2 Waste P. 128 SDG 3: Ensure healthy lives and promote provide access to justice for all and build by type and well-being for all at all ages effective, accountable and inclusive disposal SDG 6: Ensure availability and sustainable institutions at all levels method management of water and sanitation for all GRI 308: Supplier Environmental Assessment 2016 SDG 12: Ensure sustainable consumption and production patterns GRI 103: Management Approach 2016 306-3 There is neither any recorded water SDG 3: Ensure healthy lives and promote 103-1 P. 64, 66 discharges nor spills of any sort, nor are well-being for all at all ages there any water bodies that could be 103-2 There is a strict screening and evaluation SDG 6: Ensure availability and sustainable directly affected. of all suppliers to ensure they comply management of water and sanitation for all with our environmental standards. SDG 12: Ensure sustainable consumption and 103-3 P. 64, 66, 120 production patterns 308-1 All suppliers were screened using SDG 14: Conserve and sustainably use the environmental criteria and monitored via oceans, seas and marine resources for vendor evaluations during the reporting sustainable development period. P. 120 SDG 15: Protect, restore and promote 308-2 There were no negative environmental sustainable use of terrestrial ecosystems, impacts in the supply chain. Our sustainably manage forests, combat procedures and guidelines include a desertification, and halt and reverse land systematic process on how to deal with degradation and halt biodiversity loss such incidents should they occur. 306-4 We do not generate hazardous waste. SDG 3: Ensure healthy lives and promote well-being for all at all ages SDG 12: Ensure sustainable consumption and production patterns
334 Sustainability Report 2019 335 GRI 400 Social Standards Series 402-1 There is no set minimum period. There SDG 8: Promote sustained, inclusive and is a formal communication system to sustainable economic growth, full and GRI 401: Employment 2016 ensure transparency in the Bank. productive employment and decent work for all GRI 103: Management Approach 2016 103-1 P. 142, 143 GRI 403: Occupational Health and Safety 2016 103-2 It is crucial to us that mechanisms be GRI 103: Management Approach 2016 put in place for hiring and evaluating 103-1 P. 142, 143 employees, in order to ensure fairness. A number of programs are provided to 103-2 ALEXBANK's business nature is not prone ensure the employees’ satisfaction in to much risk, however all staff, internal addition to a staff union to communicate and external to the Bank are provided any grievances. with the health and safety policies and procedures of the Bank. 103-3 P. 142, 143 103-3 P. 142, 143, 198, 199 401-1 P. 142 SDG 5: Achieve gender equality and empower all women and girls 403-1 By Egyptian law, if a space has more SDG 8: Promote sustained, inclusive and than 50 people, a health and safety sustainable economic growth, full and committee is created. ALEXBANK productive employment and decent work conducts inspections and issues for all a report, then it is checked by a governmental entity which provides SDG 10: Reduce inequality within and among remarks and The Head of Health and countries and SDG Safety department checks these remarks 401-2 P. 142 SDG 3: Ensure healthy lives and promote and informs the committee. well-being for all at all ages P. 150 SDG 8: Promote sustained, inclusive and sustainable economic growth, full and 403-2 P. 150 SDG 8: Promote sustained, inclusive and productive employment and decent work sustainable economic growth, full and for all productive employment and decent work for all 401-3 P. 142 SDG 5: Achieve gender equality and empower all women and girls 403-3 By Egyptian law, if a space has more SDG 8: Promote sustained, inclusive and than 50 people, a health and safety sustainable economic growth, full and SDG 8: Promote sustained, inclusive and committee is created. ALEXBANK productive employment and decent work sustainable economic growth, full and conducts inspections and issues for all productive employment and decent work a report, then it is checked by a for all governmental entity which provides GRI 402: Labor/Management Relations 2016 remarks and The Head of Health and Safety department checks these remarks GRI 103: Management Approach 2016 and informs the committee. 103-1 ALEXBANK ensures timely discussions 403-4 P. 150 SDG 8: Promote sustained, inclusive and of significant operational changes, sustainable economic growth, full and and engages with employees and productive employment and decent work representatives to negotiate and for all implement any changes SDG 16: Promote peaceful and inclusive 103-2 Mechanisms are in place to allow societies for sustainable development, transparent channels of communication provide access to justice for all and build between management and employees, effective, accountable and inclusive as well as the submission of anonymous institutions at all levels and confidential complaints/requests of information. GRI 404: Training and Education 2016 103-3 P. 14, 15 GRI 103: Management Approach 2016 103-1 P. 142, 143, 148, 149
336 Sustainability Report 2019 337 103-2 P. 142, 143, 148, 149 GRI 406: Non-Discrimination 2016 103-3 P. 142, 143, 148, 149 GRI 103: Management Approach 2016 404-1 P. 146 SDG 4: Ensure inclusive and equitable quality 103-1 P. 31, 87, 142, 143 education and promote lifelong learning opportunities for all 103-2 Discrimination laws are of huge importance and several channels of SDG 5: Achieve gender equality and communication are provided for ease empower all women and girls and transparency. SDG 8: Promote sustained, inclusive and 103-3 P. 31, 87, 142, 143 sustainable economic growth, full and productive employment and decent work 406-1 No discrimination incidents have taken SDG 5: Achieve gender equality and for all place in this reporting period. empower all women and girls 404-2 All employees at ALEXBANK are offered SDG 8: Promote sustained, inclusive and SDG 8: Promote sustained, inclusive and the continual job skills training for skills sustainable economic growth, full and sustainable economic growth, full and upgrade. productive employment and decent work productive employment and decent work for all for all P. 146 404-3 100 percent of employees, both male SDG 5: Achieve gender equality and GRI 408: Child Labor 2016 and female get performance and empower all women and girls GRI 103: Management Approach 2016 career development reviews every year. SDG 8: Promote sustained, inclusive and Feedback and comments are given 103-1 ALEXBANK operates in Egypt and adheres sustainable economic growth, full and from both sides, the employee and the to the Egyptian labor law safeguarding its productive employment and decent work employer employees of all segments. for all P. 146 103-2 The Procurement department has strict SDG 10: Reduce inequality within and among regulations in place that prevent it countries from dealing with suppliers that have GRI 405: Diversity and Equal Opportunity 2016 inconsistent or incomplete records on its workers, or with suppliers who fall at risk GRI 103: Management Approach 2016 for incidents of child labor or hazardous exposure to its employees. 103-1 Equal opportunities are given to both males and females. 103-3 The Procurement department updates its vendor register every two years, and 103-2 ALEXBANK avoids bias by having a all new suppliers need to prove they are system in place that removes names of certified and that adhere to Egyptian applicants. laws and sector-specific regulations. They 103-3 P. 86, 87 are then investigated by the department prior to adding them to the vendor 405-1 P. 90 SDG 5: Achieve gender equality and registry. empower all women and girls 408-1 ALEXBANK operates in Egypt and adheres SDG 8: Promote sustained, inclusive and SDG 8: Promote sustained, inclusive and to the Egyptian labor law safeguarding sustainable economic growth, full and sustainable economic growth, full and its employees of all segments. ALEXBANK productive employment and decent work productive employment and decent work is committed to measures set by the for all for all local labor laws, Intesa Sanpaolo's code SDG 16: Promote peaceful and inclusive of ethics, rules and policies updated 405-2 For women, the basic salary and SDG 5: Achieve gender equality and societies for sustainable development, annually, and international regulations remuneration is 21% and for men, it is empower all women and girls provide access to justice for all and build 79% and standards. SDG 8: Promote sustained, inclusive and effective, accountable and inclusive sustainable economic growth, full and P. 120 institutions at all levels productive employment and decent work GRI 409: Forced or Compulsory Labor 2016 for all SDG 10: Reduce inequality within and among GRI 103: Management Approach 2016 countries and SDG 103-1 ALEXBANK operates in Egypt and adheres to the Egyptian labor law safeguarding its employees of all segments.
338 Sustainability Report 2019 339 103-2 The Procurement department has strict 411-1 In 2019, there were no incidents of SDG 2: End hunger, achieve food security regulations in place that prevent it violations involving rights of indigenous and improved nutrition and promote from dealing with suppliers that have peoples. sustainable agriculture inconsistent or incomplete records on its workers, or with suppliers who fall at risk GRI 412: Human Rights Assessment 2016 for incidents of child labor or hazardous GRI 103: Management Approach 2016 exposure to its employees. 103-1 There are Principles on Human Rights P. 120 policies to mitigate and prevent potential 103-3 The Procurement department updates violations of human rights indirectly its vendor register every two years, and or directly associated with the Bank’s all new suppliers need to prove they are activities. certified and that adhere to Egyptian laws 103-2 There are Principles on Human Rights and sector-specific regulations. They are policies to mitigate and prevent potential then investigated by the department prior violations of human rights indirectly to adding them to the vendor registry. or directly associated with the Bank’s 409-1 ALEXBANK operates in Egypt and adheres SDG 8: Promote sustained, inclusive and activities. to the Egyptian labor law safeguarding sustainable economic growth, full and 103-3 P. 105 its employees of all segments and it productive employment and decent work does not engage in forced or compulsory for all 412-1 No operations are subject to human labor. Our ethics policies do not permit rights reviews or human rights impact coerced labor of any kind. If any such assessments, given the low materiality to incident occurs in partner operations, it our own operations. would be re-evaluated for suspension. P. 87 P. 120 412-2 P. 87, 146 GRI 410: Security Practices 2016 412-3 P. 87 GRI 103: Management Approach 2016 GRI 413: Local Communities 2016 103-1 P. 20 GRI 103: Management Approach 2016 103-2 All security personnel receive customer service, communication, and verbal de- 103-1 P. 36, 37, 41 escalation training. 103-2 ALEXBANK works extensively on financial 103-3 P. 20 inclusion of which local communities are the main targets 410-1 The whole security team has been SDG 16: Promote peaceful and inclusive provided with training regarding human societies for sustainable development, 103-3 P. 36, 37, 41 rights policies and their application to provide access to justice for all and build 413-1 There are no operations that have a security. effective, accountable and inclusive negative impact on local communities. institutions at all levels 413-2 There are no operations that have SDG 1: End poverty in all its forms GRI 411: Rights of Indigenous Peoples 2016 significant actual and potential negative everywhere impact on local communities. GRI 103: Management Approach 2016 SDG 2: End hunger, achieve food security and improved nutrition and promote 103-1 Indigenous peoples have both collective sustainable agriculture and individual rights, and they have the right to occupy and use their lands or GRI 414: Supplier Social Assessment 2016 territories. GRI 103: Management Approach 2016 103-2 In 2019, no reports emerged on possible violations of the rights of the natives; 103-1 Supplier human rights clauses are Equator Principles. included in all contractual agreements. 103-3 In 2019, no reports emerged on possible 103-2 Supplier human rights clauses are violations of the rights of the natives; included in all contractual agreements. Equator Principles. 103-3 P. 67
340 Sustainability Report 2019 341 414-1 No new suppliers are subject to Human SDG 5: Achieve gender equality and 103-2 Health and safety of ALEXBANK customers Rights impact assessments. empower all women and girls is taken seriously whether physically in SDG 8: Promote sustained, inclusive and our premises and branches or in form of sustainable economic growth, full and the protection of their information and all productive employment and decent work related processes. Physical safety is ensured for all through the constant security monitoring of all branches, as well as the constant SDG 16: Promote peaceful and inclusive presence of trained security personnel and societies for sustainable development, national police force representatives. provide access to justice for all and build effective, accountable and inclusive 103-3 ALEXBANK is also fully committed institutions at all levels to cyber security threats through governance practices to ensure 414-2 There are no suppliers that are subject SDG 5: Achieve gender equality and the customer services, products to Human Rights impact assessments, empower all women and girls and customers related data stored, therefore no negative social impacts in SDG 8: Promote sustained, inclusive and processed through ALEXBANK. the supply chain and actions were taken. sustainable economic growth, full and P. 115 productive employment and decent work 416-1 P. 115 for all SDG 16: Promote peaceful and inclusive 416-2 P. 41 SDG 16: Promote peaceful and inclusive societies for sustainable development, societies for sustainable development, provide access to justice for all and build provide access to justice for all and build effective, accountable and inclusive effective, accountable and inclusive institutions at all levels institutions at all levels GRI 418: Customer Privacy 2016 GRI 415: Public Policy 2016 GRI 103: Management Approach 2016 GRI 103: Management Approach 2016 103-1 P. 115 103-1 ALEXBANK does not deal with political 103-2 There is a very secure internal system in figures. place that processes all our customers’ 103-2 ALEXBANK does not deal with political data. figures. 103-3 P. 115 103-3 ALEXBANK does not deal with political 418-1 There were 768 written complaints, which SDG 16: Promote peaceful and inclusive figures. represent 0.86 % of total complaints. societies for sustainable development, No breaches of customer privacy took provide access to justice for all and build 415-1 The Bank does not fund political figures. SDG 16: Promote peaceful and inclusive place throughout ALEXBANK's lifetime or effective, accountable and inclusive societies for sustainable development, this reporting period. institutions at all levels provide access to justice for all and build effective, accountable and inclusive P. 114 institutions at all levels GRI 419: Socioeconomic Compliance 2016 GRI 416: Customer Health and Safety 2016 GRI 103: Management Approach 2016 GRI 103: Management Approach 2016 103-1 P. 10, 41 103-2 All of our offerings are in line with the 103-1 ALEXBANK's health and safety function Central Bank of Egypt’s guidelines. is responsible to safeguard the health and safety of all individuals present 103-3 Strict procedures are in place to in its premises (staff and customers) protecting the rights and privacy of our and adheres to the Egyptian health and employees and customers. safety regulations. P. 10, 41 419-1 ALEXBANK does not have any fines in this SDG 16: Promote peaceful and inclusive reporting period. societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
342 Sustainability Report 2019 343